10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 10-Q

___________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File No. 001-13300

____________________________________

CAPITAL ONE FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter) 

____________________________________

Delaware		54-1719854
(State or other jurisdiction of incorporation or organization)		(I.R.S. 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, former address and former fiscal year, if changed since last report)
____________________________________

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of September 30, 2024, there were 381,510,336 shares of the registrant’s Common Stock outstanding.

TABLE OF CONTENTS

		Page
PART I - FINANCIAL INFORMATION		4
Item 1.	Financial Statements	76
	Consolidated Statements of Income	77
	Consolidated Statements of Comprehensive Income	78
	Consolidated Balance Sheets	79
	Consolidated Statements of Changes in Stockholders’ Equity	80
	Consolidated Statements of Cash Flows	82
	Notes to Consolidated Financial Statements	84
	Note 1—Summary of Significant Accounting Policies	84
	Note 2—Business Combinations	86
	Note 3—Investment Securities	87
	Note 4—Loans	90
	Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments	105
	Note 6—Variable Interest Entities and Securitizations	110
	Note 7—Goodwill and Other Intangible Assets	114
	Note 8—Deposits and Borrowings	115
	Note 9—Derivative Instruments and Hedging Activities	116
	Note 10—Stockholders’ Equity	126
	Note 11—Earnings Per Common Share	130
	Note 12—Fair Value Measurement	131
	Note 13—Business Segments and Revenue from Contracts with Customers	139
	Note 14—Commitments, Contingencies, Guarantees and Others	143
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)	4
	Introduction	4
	Selected Financial Data	6
	Executive Summary	9
	Consolidated Results of Operations	10
	Consolidated Balance Sheets Analysis	18
	Off-Balance Sheet Arrangements	21
	Business Segment Financial Performance	22
	Critical Accounting Policies and Estimates	32
	Accounting Changes and Developments	33
	Capital Management	34
	Risk Management	39
	Credit Risk Profile	41
	Liquidity Risk Profile	55
	Market Risk Profile	60
	Supervision and Regulation	63
	Forward-Looking Statements	64
	Supplemental Table	67
	Glossary and Acronyms	69

1 Capital One Financial Corporation (COF)

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	147
Item 4.	Controls and Procedures	147
PART II—OTHER INFORMATION		148
Item 1.	Legal Proceedings	148
Item 1A.	Risk Factors	148
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	148
Item 3.	Defaults Upon Senior Securities	148
Item 4.	Mine Safety Disclosures	148
Item 5.	Other Information	148
Item 6.	Exhibits	149
EXHIBIT INDEX		150
SIGNATURES		151

2 Capital One Financial Corporation (COF)

INDEX OF MD&A AND SUPPLEMENTAL TABLE

MD&A Tables:		Page
1	Consolidated Financial Highlights	6
2	Average Balances, Net Interest Income and Net Interest Margin	11
3	Rate/Volume Analysis of Net Interest Income	14
4	Non-Interest Income	15
5	Non-Interest Expense	17
6	Loans Held for Investment	19
7	Funding Sources Composition	19
8	Business Segment Results	23
9	Credit Card Business Results	24
9.1	Domestic Card Business Results	26
10	Consumer Banking Business Results	27
11	Commercial Banking Business Results	29
12	Other Category Results	31
13	Capital Ratios Under Basel III	36
14	Regulatory Risk-Based Capital Components and Regulatory Capital Metrics	37
15	Preferred Stock Dividends Paid Per Share	38
16	Portfolio Composition of Loans Held for Investment	41
17	Credit Card Portfolio by Geographic Region	42
18	Consumer Banking Portfolio by Geographic Region	43
19	Commercial Real Estate Portfolio by Region	44
20	Commercial Loans by Industry	45
21	Credit Score Distribution	46
22	30+ Day Delinquencies	47
23	Aging and Geography of 30+ Day Delinquent Loans	48
24	90+ Day Delinquent Loans Accruing Interest	49
25	Nonperforming Loans and Other Nonperforming Assets	50
26	Net Charge-Offs	51
27	Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity	53
28	Liquidity Reserves	55
29	Deposits Composition and Average Deposits Interest Rates	57
30	Long-Term Debt Funding Activities	58
31	Senior Unsecured Long-Term Debt Credit Ratings	59
32	Interest Rate Sensitivity Analysis	62
Supplemental Table:
A	Reconciliation of Non-GAAP Measures	67

3 Capital One Financial Corporation (COF)

PART I—FINANCIAL INFORMATION

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

This discussion contains forward-looking statements that are based upon management’s current expectations and are subject to significant uncertainties and changes in circumstances. Please review “Forward-Looking Statements” for more information on the forward-looking statements in this Quarterly Report on Form 10-Q (“this Report”). All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. Our actual results may differ materially from those included in these forward-looking statements due to a variety of factors including, but not limited to, those described in “Part I—Item 1A. Risk Factors” in our 2023 Annual Report on Form 10-K (“2023 Form 10-K”) and “Part II—Item 1A. Risk Factors” in this Report. Unless otherwise specified, references to notes to our consolidated financial statements refer to the notes to our consolidated financial statements as of September 30, 2024 included in this Report.

Management monitors a variety of key indicators to evaluate our business results and financial condition. The following MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and related notes in this Report and the more detailed information contained in our 2023 Form 10-K.

INTRODUCTION

Capital One Financial Corporation, a Delaware corporation established in 1994 and headquartered in McLean, Virginia, is a diversified financial services holding company with banking and non-banking subsidiaries. Capital One Financial Corporation and its subsidiaries (the “Company” or “Capital One”) offer a broad array of financial products and services to consumers, small businesses and commercial clients through digital channels, branch locations, cafés and other distribution channels.

As of September 30, 2024, Capital One Financial Corporation’s principal operating subsidiary was Capital One, National Association (“CONA”). The Company is hereafter collectively referred to as “we,” “us” or “our.” CONA is referred to as the “Bank.”

Our consolidated total net revenues are derived primarily from lending to consumer and commercial customers net of funding costs associated with our deposits, long-term debt and other borrowings. We also earn non-interest income which primarily consists of interchange income, net of reward expenses, service charges and other customer-related fees. Our expenses primarily consist of the provision for credit losses, operating expenses, marketing expenses and income taxes.

Our principal operations are organized for management reporting purposes into three major business segments, which are defined primarily based on the products and services provided or the types of customers served: Credit Card, Consumer Banking and Commercial Banking. The operations of acquired businesses have been integrated into or managed as a part of our existing business segments. Certain activities that are not part of a business segment are included in the Other category, such as the management of our corporate investment portfolio and asset/liability positions performed by our centralized Corporate Treasury group and any residual tax expense or benefit beyond what is assessed to our business segments in order to arrive at the consolidated effective tax rate. The Other category also includes unallocated corporate expenses that do not directly support the operations of the business segments or for which the business segments are not considered financially accountable in evaluating their performance, such as certain restructuring charges and integration expenses related to the agreement to acquire Discover.

•Credit Card: Consists of our domestic consumer and small business card lending, and international card businesses in the United Kingdom (“U.K.”) and Canada.

•Consumer Banking: Consists of our deposit gathering and lending activities for consumers and small businesses, and national auto lending.

•Commercial Banking: Consists of our lending, deposit gathering, capital markets and treasury management services to commercial real estate and commercial and industrial customers. Our customers typically include companies with annual revenues between $20 million and $2 billion.

4 Capital One Financial Corporation (COF)

Business Developments

We regularly explore and evaluate opportunities to acquire financial products and services as well as financial assets, including credit card and other loan portfolios, and enter into strategic partnerships as part of our growth strategy. We also explore opportunities to acquire technology companies and related assets to improve our information technology infrastructure and to deliver on our digital strategy. We may issue equity or debt to fund our acquisitions. In addition, we regularly consider the potential disposition of certain of our assets, branches, partnership agreements or lines of business.

Agreement to Acquire Discover

On February 19, 2024, the Company entered into an agreement and plan of merger (the “Merger Agreement”), by and among Capital One, Discover Financial Services, a Delaware corporation (“Discover”) and Vega Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of the Company (“Merger Sub”), pursuant to which (a) Merger Sub will merge with and into Discover, with Discover as the surviving entity in the merger (the “Merger”); (b) immediately following the Merger, Discover, as the surviving entity, will merge with and into Capital One, with Capital One as the surviving entity in the second-step merger (the “Second Step Merger”); and (c) immediately following the Second Step Merger, Discover Bank, a Delaware-chartered and wholly owned subsidiary of Discover, will merge with and into CONA, with CONA as the surviving entity in the merger (the “CONA Bank Merger,” and collectively with the Merger and the Second Step Merger, the “Transaction”). The Merger Agreement was unanimously approved by the Boards of Directors of each of Capital One and Discover.

At the effective time of the Merger, each share of common stock of Discover outstanding immediately prior to the effective time of the Merger, other than certain shares held by Discover or Capital One, will be converted into the right to receive 1.0192 shares of common stock of Capital One. Holders of Discover common stock will receive cash in lieu of fractional shares. At the effective time of the Second Step Merger, each share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, of Discover, and each share of 6.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D, of Discover, in each case outstanding immediately prior to the effective time of the Second Step Merger, will be converted into the right to receive a share of newly created series of preferred stock of Capital One having terms that are not materially less favorable than the applicable series of Discover preferred stock. The closing of the Transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals and approval by the stockholders of each of Capital One and Discover.

Walmart Program Agreement Termination

On May 21, 2024, our credit card program agreement with Walmart terminated (“Walmart Program Termination”). Pursuant to terms of the termination, Capital One retained ownership and servicing of the existing credit card portfolio of approximately $8.5 billion of loans. In the third quarter of 2024, the Company began converting eligible customers and integrating the accounts into Capital One branded card products, which may result in elevated operational and performance uncertainties as this portfolio converts to branded products.

Consumer Financial Protection Bureau Final Rule

On March 5, 2024, the Consumer Financial Protection Bureau (“CFPB”) issued a final rule amending Regulation Z that, if it goes into effect as currently issued, would significantly lower the safe harbor amount for past due fees that a large credit card issuer, including the Bank, can charge on consumer credit card accounts. The final rule is currently stayed as a result of ongoing litigation.

The final rule, if it goes into effect as currently issued, would have a significant impact on our revenue, as well as potentially significant marketplace effects, including effects on competition, pricing, consumer behaviors, volumes, and credit. In response to the final rule, we have developed a number of mitigating actions and some of these mitigating actions have been implemented. Other actions may be implemented as a result of the final rule.

For more information on risks related to this rule, see the risk factors set forth under “Part I—Item 1A. Risk Factors” in our 2023 Form 10-K.

5 Capital One Financial Corporation (COF)

SELECTED FINANCIAL DATA

The following table presents selected consolidated financial data and performance from our results of operations for the third quarter and first nine months of 2024 and 2023 and selected comparative balance sheet data as of September 30, 2024 and December 31, 2023. We also provide selected key metrics we use in evaluating our performance, including certain metrics that are computed using non-GAAP measures. We consider these metrics to be key financial measures that management uses in assessing our operating performance, capital adequacy and the level of returns generated. We believe these non-GAAP metrics provide useful insight 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 United States of America (“U.S. GAAP”), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies.

Table 1: Consolidated Financial Highlights

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted)	2024		2023		Change	2024		2023		Change
Income statement
Net interest income	$	8,076	$	7,423	9%	$	23,110	$	21,722	6%
Non-interest income	1,938		1,943		—	5,812		5,559		5
Total net revenue	10,014		9,366		7	28,922		27,281		6
Provision for credit losses	2,482		2,284		9	9,074		7,569		20
Non-interest expense:
Marketing	1,113		972		15	3,187		2,755		16
Operating expense	4,201		3,888		8	12,210		11,844		3
Total non-interest expense	5,314		4,860		9	15,397		14,599		5
Income from continuing operations before income taxes	2,218		2,222		—	4,451		5,113		(13)
Income tax provision	441		432		2	797		932		(14)
Net income	1,777		1,790		(1)	3,654		4,181		(13)
Dividends and undistributed earnings allocated to participating securities	(28)		(28)		—	(60)		(67)		(10)
Preferred stock dividends	(57)		(57)		—	(171)		(171)		—
Net income available to common stockholders	$	1,692	$	1,705	(1)	$	3,423	$	3,943	(13)
Common share statistics
Basic earnings per common share:
Net income per basic common share	$	4.42	$	4.46	(1)%	$	8.94	$	10.31	(13)%
Diluted earnings per common share:
Net income per diluted common share	$	4.41	$	4.45	(1)%	$	8.92	$	10.28	(13)%
Weighted-average common shares outstanding (in millions):
Basic	383.0		382.5		—	382.8		382.7		—
Diluted	383.7		383.3		—	383.7		383.6		—
Common shares outstanding (period-end, in millions)	381.5		381.0		—	381.5		381.0		—
Dividends declared and paid per common share	$	0.60	$	0.60	—	$	1.80	$	1.80	—
Tangible book value per common share (period-end)(1)	112.36		87.97		28%	112.36		87.97		28%

6 Capital One Financial Corporation (COF)

	Three Months Ended September 30,							Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted)	2024			2023			Change	2024			2023			Change
Balance sheet (average balances)
Loans held for investment	$	318,255		$	312,759		2%	$	315,927		$	310,075		2%
Interest-earning assets	454,484			443,532			2	451,078			439,321			3
Total assets	481,219			469,860			2	477,816			466,279			2
Interest-bearing deposits	324,509			316,032			3	321,856			312,702			3
Total deposits	351,125			345,013			2	348,765			342,956			2
Borrowings	48,274			49,736			(3)	49,194			48,746			1
Common equity	56,443			50,166			13	54,293			50,202			8
Total stockholders’ equity	61,289			55,012			11	59,139			55,048			7
Selected performance metrics
Purchase volume	$	166,203		$	158,640		5%	$	481,517		$	458,235		5%
Total net revenue margin(2)	8.81%			8.45%			36bps	8.55%			8.28%			27bps
Net interest margin	7.11			6.69			42	6.83			6.59			24
Return on average assets(3)	1.48			1.52			(4)	1.02			1.20			(18)
Return on average tangible assets(4)	1.53			1.58			(5)	1.05			1.24			(19)
Return on average common equity(5)	11.99			13.59			(160)	8.41			10.47			(206)
Return on average tangible common equity(6)	16.42			19.59			(317)	11.69			15.01			(332)
Equity-to-assets ratio(7)	12.74			11.71			103	12.38			11.81			57
Efficiency ratio(8)	53.07			51.89			118	53.24			53.51			(27)
Operating efficiency ratio(9)	41.95			41.51			44	42.22			43.41			(119)
Adjusted operating efficiency ratio(10)	41.41			41.51			(10)	41.71			43.41			(170)
Effective income tax rate from continuing operations	19.9			19.4			50	17.9			18.2			(30)
Net charge-offs	$	2,604		$	1,999		30%	$	7,864		$	5,881		34%
Net charge-off rate	3.27		%	2.56		%	71bps	3.32		%	2.53		%	79bps

    

(Dollars in millions, except as noted)	September 30, 2024			December 31, 2023			Change
Balance sheet (period-end)
Loans held for investment	$	320,243		$	320,472		—
Interest-earning assets	458,189			449,701			2%
Total assets	486,433			478,464			2
Interest-bearing deposits	327,253			320,389			2
Total deposits	353,631			348,413			1
Borrowings	49,336			49,856			(1)
Common equity	58,080			53,244			9
Total stockholders’ equity	62,925			58,089			8
Credit quality metrics
Allowance for credit losses	$	16,534		$	15,296		8%
Allowance coverage ratio	5.16		%	4.77		%	39bps
30+ day performing delinquency rate	3.58			3.71			(13)
30+ day delinquency rate	3.89			3.99			(10)

7 Capital One Financial Corporation (COF)

(Dollars in millions, except as noted)	September 30, 2024		December 31, 2023		Change
Capital ratios
Common equity Tier 1 capital(11)	13.6	%	12.9	%	70bps
Tier 1 capital(11)	14.9		14.2		70
Total capital(11)	16.6		16.0		60
Tier 1 leverage(11)	11.6		11.2		40
Tangible common equity(12)	9.1		8.2		90
Supplementary leverage(11)	9.9		9.6		30
Other
Employees (period end, in thousands)	52.5		52.0		1%

__________

(1)Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity (“TCE”) divided by common shares outstanding. See “Supplemental Table—Table A—Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

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

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

(4)Return on average tangible assets is a non-GAAP measure calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period. See “Supplemental Table—Table A—Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(5)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.

(6)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. Our calculation of return on average TCE may not be comparable to similarly-titled measures reported by other companies. See “Supplemental Table—Table A—Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(7)Equity-to-assets ratio is calculated based on average stockholders’ equity for the period divided by average total assets for the period.

(8)Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period.

(9)Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period.

(10)Adjusted operating efficiency ratio is a non-GAAP measure. See “Supplemental Table—Table A—Reconciliation of Non-GAAP Measures” for a reconciliation of our adjusted operating efficiency ratio (non-GAAP) to our operating efficiency ratio (GAAP).

(11)Capital ratios are calculated based on the Basel III standardized approach framework. See “Capital Management” for additional information.

(12)Tangible common equity ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Supplemental Table—Table A—Reconciliation of Non-GAAP Measures” for the calculation of this measure and reconciliation to the comparative U.S. GAAP measure.

8 Capital One Financial Corporation (COF)

EXECUTIVE SUMMARY

Financial Highlights

We reported net income of $1.8 billion ($4.41 per diluted common share) on total net revenue of $10.0 billion and net income of $3.7 billion ($8.92 per diluted common share) on total net revenue of $28.9 billion for the third quarter and first nine months of 2024, respectively. In comparison, we reported net income of $1.8 billion ($4.45 per diluted common share) on total net revenue of $9.4 billion and net income of $4.2 billion ($10.28 per diluted common share) on total net revenue of $27.3 billion for the third quarter and first nine months of 2023, respectively.

Our common equity Tier 1 (“CET1”) capital ratio as calculated under the Basel III standardized approach was 13.6% and 12.9% as of September 30, 2024 and December 31, 2023, respectively. See “Capital Management” for additional information.

In the third quarter of 2024, we declared and paid common stock dividends of $233 million and repurchased $150 million of shares of our common stock. During the first nine months of 2024, we declared and paid common stock dividends of $705 million and repurchased $403 million of shares of our common stock. See “Capital Management—Dividend Policy and Stock Purchases” for additional information.

Below are additional highlights of our performance in the third quarter and first nine months of 2024. These highlights are based on a comparison between the results of the third quarter and first nine months of 2024 and 2023, except as otherwise noted. The changes in our financial condition and credit performance are generally based on our financial condition and credit performance as of September 30, 2024 compared to December 31, 2023. We provide a more detailed discussion of our financial performance in the sections following this “Executive Summary.”

Total Company Performance

•Earnings:

Our net income decreased by $13 million to $1.8 billion in the third quarter of 2024 compared to the third quarter of 2023 primarily driven by:

◦Higher provision for credit losses in the third quarter of 2024 primarily driven by higher net charge-offs, including the impacts of the elimination of loss sharing provisions due to the Walmart Program Termination, partially offset by allowance releases compared to a net allowance build in the third quarter of 2023.

◦Higher non-interest expense primarily driven by growth in our Credit Card business and increased marketing spend.

These drivers were partially offset by:

◦Higher net-interest income primarily driven by higher average loan balances and margins in our credit card loan portfolio, including the impacts of the elimination of revenue sharing provisions due to the Walmart Program Termination.

Our net income decreased by $527 million to $3.7 billion in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by:

◦Higher provision for credit losses in the first nine months of 2024 primarily driven by higher net charge-offs in Domestic Card, partially offset by a lower net allowance build.

◦Higher non-interest expense primarily driven by growth in our Credit Card business and increased marketing spend.

These drivers were partially offset by:

◦Higher net-interest income primarily driven by higher average loan balances and margins in our credit card loan portfolio, including the impacts of the elimination of revenue sharing provisions due to the Walmart Program Termination, partially offset by higher rates paid on interest-bearing deposits.

•Loans Held for Investment:

9 Capital One Financial Corporation (COF)

◦Period-end loans held for investment decreased by $229 million to $320.2 billion as of September 30, 2024 from December 31, 2023 primarily driven by customer payments outpacing originations in our commercial loan portfolio, partially offset by growth in our credit card and auto loan portfolios.

◦Average loans held for investment increased by $5.5 billion to $318.3 billion in the third quarter of 2024 compared to the third quarter of 2023 and increased by $5.9 billion to $315.9 billion in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by growth in our credit card loan portfolio, partially offset by customer payments outpacing originations in our commercial loan portfolio.

•Net Charge-Off and Delinquency Metrics:

◦Our net charge-off rate increased by 71 basis points (“bps”) to 3.27% in the third quarter of 2024 compared to the third quarter of 2023 and increased by 79 bps to 3.32% in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by higher net charge-offs in our credit card loan portfolio.

◦Our 30+ day delinquency rate decreased by 10 bps to 3.89% as of September 30, 2024 from December 31, 2023 primarily driven by lower delinquency inventories in our auto loan portfolio.

•Allowance for Credit Losses: Our allowance for credit losses increased by $1.2 billion to $16.5 billion and our allowance coverage ratio increased by 39 bps to 5.16% as of September 30, 2024 compared to December 31, 2023 primarily driven by an allowance build due to the Walmart Program Termination in the second quarter of 2024.

CONSOLIDATED RESULTS OF OPERATIONS

The section below provides a comparative discussion of our consolidated financial performance for the third quarter and first nine months of 2024 and 2023. We provide a discussion of our business segment results in the following section, “Business Segment Financial Performance.” This section should be read together with our “Executive Summary,” where we discuss trends and other factors that we expect will affect our future results of operations.

Net Interest Income

Net interest income represents the difference between interest income, including certain fees, earned on our interest-earning assets and the interest expense incurred on our interest-bearing liabilities. Our interest-earning assets include loans, investment securities and other interest-earning assets, while our interest-bearing liabilities include interest-bearing deposits, securitized debt obligations, senior and subordinated notes, other borrowings and other interest-bearing liabilities. Generally, we include in interest income any past due fees, net of reversals, on loans that we deem collectible. Our net interest margin, based on our consolidated results, represents the difference between the yield on our interest-earning assets and the cost of our interest-bearing liabilities, including the notional impact of non-interest-bearing funding. We expect net interest income and our net interest margin to fluctuate based on changes in interest rates and changes in the amount and composition of our interest-earning assets and interest-bearing liabilities.

10 Capital One Financial Corporation (COF)

Table 2 below presents the average outstanding balance, interest income earned, interest expense incurred and average yield for the third quarter and first nine months of 2024 and 2023 for each major category of our interest-earning assets and interest-bearing liabilities. Nonperforming loans are included in the average loan balances below.

Table 2: Average Balances, Net Interest Income and Net Interest Margin

	Three Months Ended September 30,
	2024						2023
(Dollars in millions)	Average Balance		Interest Income/ Expense		Average Yield/ Rate(1)		Average Balance		Interest Income/ Expense		Average Yield/ Rate(1)
Assets:
Interest-earning assets:
Loans:(2)
Credit card	$	154,160	$	7,578	19.66	%	$	144,053	$	6,850	19.02	%
Consumer banking	76,182		1,692		8.88		77,154		1,537		7.97
Commercial banking(3)	88,373		1,601		7.24		92,254		1,642		7.12
Other(4)	—		(324)		**		—		(333)		**
Total loans, including loans held for sale	318,715		10,547		13.24		313,461		9,696		12.37
Investment securities	90,644		733		3.24		87,845		627		2.86
Cash equivalents and other interest-earning assets	45,125		580		5.14		42,226		550		5.21
Total interest-earning assets	454,484		11,860		10.44		443,532		10,873		9.81
Cash and due from banks	3,815						3,580
Allowance for credit losses	(16,654)						(14,649)
Premises and equipment, net	4,414						4,380
Other assets	35,160						33,017
Total assets	$	481,219					$	469,860
Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits	$	324,509	$	2,945	3.63	%	$	316,032	$	2,611	3.30	%
Securitized debt obligations	15,833		234		5.93		17,649		249		5.63
Senior and subordinated notes	32,041		596		7.43		31,522		579		7.36
Other borrowings and interest-bearing liabilities(5)	2,389		9		1.50		2,473		11		1.79
Total interest-bearing liabilities	374,772		3,784		4.04		367,676		3,450		3.75
Non-interest-bearing deposits	26,616						28,981
Other liabilities	18,542						18,191
Total liabilities	419,930						414,848
Stockholders’ equity	61,289						55,012
Total liabilities and stockholders’ equity	$	481,219					$	469,860
Net interest income/spread			$	8,076	6.40				$	7,423	6.05
Impact of non-interest-bearing funding					0.71						0.64
Net interest margin(6)					7.11	%					6.69%

11 Capital One Financial Corporation (COF)

	Nine Months Ended September 30,
	2024						2023
(Dollars in millions)	Average Balance		Interest Income/ Expense		Average Yield/ Rate(1)		Average Balance		Interest Income/ Expense		Average Yield/ Rate(1)
Assets:
Interest-earning assets:
Loans:(2)
Credit card	$	151,700	$	21,733	19.10	%	$	139,196	$	19,205	18.40	%
Consumer banking	75,555		4,867		8.59		77,944		4,484		7.67
Commercial banking(3)	89,452		4,829		7.20		93,517		4,710		6.72
Other(4)	—		(969)		**		—		(923)		**
Total loans, including loans held for sale	316,707		30,460		12.82		310,657		27,476		11.79
Investment securities	89,580		2,120		3.16		89,259		1,881		2.81
Cash equivalents and other interest-earning assets	44,791		1,737		5.17		39,405		1,436		4.86
Total interest-earning assets	451,078		34,317		10.14		439,321		30,793		9.35
Cash and due from banks	3,775						3,876
Allowance for credit losses	(15,783)						(14,064)
Premises and equipment, net	4,396						4,366
Other assets	34,350						32,780
Total assets	$	477,816					$	466,279
Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits	$	321,856	$	8,631	3.58	%	$	312,702	$	6,744	2.88%
Securitized debt obligations	17,036		753		5.90		17,558		696		5.28
Senior and subordinated notes	31,744		1,793		7.53		30,611		1,596		6.95
Other borrowings and interest-bearing liabilities(5)	2,422		30		1.67		2,410		35		1.94
Total interest-bearing liabilities	373,058		11,207		4.01		363,281		9,071		3.33
Non-interest-bearing deposits	26,909						30,254
Other liabilities	18,710						17,696
Total liabilities	418,677						411,231
Stockholders’ equity	59,139						55,048
Total liabilities and stockholders’ equity	$	477,816					$	466,279
Net interest income/spread			$	23,110	6.14				$	21,722	6.02
Impact of non-interest-bearing funding					0.69						0.57
Net interest margin(6)					6.83	%					6.59%

__________

(1)Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing. Average yield is calculated using whole dollar values for average balances and interest income/expense.

(2)Past due fees, net of reversals, included in interest income totaled approximately $626 million and $1.7 billion in the third quarter and first nine months of 2024, respectively, and $593 million and $1.6 billion in the third quarter and first nine months of 2023, respectively.

(3)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. Taxable-equivalent adjustments included in the interest income and yield computations for our commercial loans totaled approximately $20 million and $59 million in the third quarter and first nine months of 2024, respectively, and $18 million and $55 million in the third quarter and first nine months of 2023, respectively, with corresponding reductions to the Other category.

(4)Interest income/expense in the Other category represents the impact of hedge accounting on our loan portfolios and the offsetting reduction of the taxable-equivalent adjustments of our commercial loans as described above.

12 Capital One Financial Corporation (COF)

(5)Includes amounts related to entities that provide capital to low-income and rural communities of $2.0 billion and $2.0 billion in the third quarter and first nine months of 2024, respectively, and $1.9 billion and $1.8 billion in the third quarter and first nine months of 2023, respectively. Related interest expense was $7 million and $23 million for the third quarter and first nine months of 2024, respectively, and $8 million and $24 million for the third quarter and first nine months of 2023, respectively.

(6)     The Walmart Program Termination increased net interest margin by 22 bps and 11 bps in the third quarter and first nine months of 2024.

**    Not meaningful.

Net interest income increased by $653 million to $8.1 billion in the third quarter of 2024 compared to the third quarter of 2023 primarily driven by higher average loan balances and margins in our credit card loan portfolio, including the impacts of the elimination of revenue sharing provisions due to the Walmart Program Termination. Net interest income increased by $1.4 billion to $23.1 billion in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by higher average loan balances and margins in our credit card loan portfolio, including the impacts of the elimination of revenue sharing provisions due to the Walmart Program Termination, partially offset by higher rates paid on interest-bearing deposits.

Net interest margin increased by 42 bps to 7.11% in the third quarter of 2024 compared to the third quarter of 2023 and increased by 24 bps to 6.83% in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by higher asset yields and growth in our credit card loan portfolio, partially offset by higher rates paid on interest-bearing deposits.

Our total company cumulative interest-bearing deposit beta was 62% as of June 30, 2024, prior to the Federal Reserve reducing the target federal funds rate during the third quarter of 2024, which marked the beginning of a new rate cycle.

13 Capital One Financial Corporation (COF)

Table 3 displays the change in our net interest income between periods and the extent to which the variance is attributable to:

•changes in the volume of our interest-earning assets and interest-bearing liabilities; or

•changes in the interest rates related to these assets and liabilities.

Table 3: Rate/Volume Analysis of Net Interest Income(1)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024 vs. 2023						2024 vs. 2023
(Dollars in millions)	Total Variance		Volume		Rate		Total Variance		Volume		Rate
Interest income:
Loans:
Credit card	$	728	$	491	$	237	$	2,528	$	1,770	$	758
Consumer banking	155		(19)		174		383		(137)		520
Commercial banking(2)	(41)		(69)		28		119		(205)		324
Other(3)	9		—		9		(46)		—		(46)
Total loans, including loans held for sale	851		403		448		2,984		1,428		1,556
Investment securities	106		20		86		239		7		232
Cash equivalents and other interest-earning assets	30		37		(7)		301		204		97
Total interest income	987		460		527		3,524		1,639		1,885
Interest expense:
Interest-bearing deposits	334		71		263		1,887		202		1,685
Securitized debt obligations	(15)		(26)		11		57		(21)		78
Senior and subordinated notes	17		10		7		197		61		136
Other borrowings and liabilities	(2)		—		(2)		(5)		—		(5)
Total interest expense	334		55		279		2,136		242		1,894
Net interest income	$	653	$	405	$	248	$	1,388	$	1,397	$	(9)

__________

(1)We calculate the change in interest income and interest expense separately for each item. The portion of interest income or interest expense attributable to both volume and rate is allocated proportionately when the calculation results in a positive value. When the portion of interest income or interest expense attributable to both volume and rate results in a negative value, the total amount is allocated to volume or rate, depending on which amount is positive.

(2)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.

(3)Interest income/expense in the Other category represents the impact of hedge accounting on our loan portfolios and the offsetting reduction of the taxable-equivalent adjustments of our commercial loans as described above.

14 Capital One Financial Corporation (COF)

Non-Interest Income

Table 4 displays the components of non-interest income for the third quarter and first nine months of 2024 and 2023.

Table 4: Non-Interest Income

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2024		2023		2024		2023
Interchange fees, net	$	1,228	$	1,234	$	3,622	$	3,586
Service charges and other customer-related fees	501		453		1,422		1,243
Net securities gains (losses)	(35)		—		(35)		—
Other(1)(2)	244		256		803		730
Total non-interest income	$	1,938	$	1,943	$	5,812	$	5,559

________

(1)Primarily consists of revenue from Capital One Shopping, treasury and other investment income, our credit card partnership agreements and commercial mortgage banking revenue.

(2)Includes gains of $36 million and $89 million on deferred compensation plan investments in the third quarter and first nine months of 2024, respectively, and losses of $13 million and gains of $36 million on deferred compensation plan investments in the third quarter and first nine months of 2023, respectively. These amounts have corresponding offsets in non-interest expense.

Non-interest income remained substantially flat at $1.9 billion in the third quarter of 2024 compared to the third quarter of 2023. Non-interest income increased by $253 million to $5.8 billion in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by growth in our Credit Card business and higher capital markets activity in our Commercial Banking business.

15 Capital One Financial Corporation (COF)

Provision for Credit Losses

Our provision for credit losses in each period is driven by net charge-offs, changes to the allowance for credit losses and changes to the reserve for unfunded lending commitments. Our provision for credit losses increased by $198 million to $2.5 billion in the third quarter of 2024 primarily driven by higher net charge-offs, including the impacts of the elimination of loss sharing provisions due to the Walmart Program Termination, partially offset by an allowance release compared to an allowance build in the third quarter of 2023. Our provision for credit losses increased by $1.5 billion to $9.1 billion in the first nine months of 2024 primarily driven by higher net charge-offs in Domestic Card, partially offset by a lower net allowance build.

We provide additional information on the provision for credit losses and changes in the allowance for credit losses within “Credit Risk Profile” and “Part I—Item 1. Financial Statements—Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments.” For information on the allowance methodology for each of our loan categories, see “Part II—Item 8. Financial Statements—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K.

16 Capital One Financial Corporation (COF)

Non-Interest Expense

Table 5 displays the components of non-interest expense for the third quarter and first nine months of 2024 and 2023.

Table 5: Non-Interest Expense

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2024		2023		2024		2023
Operating Expense:
Salaries and associate benefits(1)	$	2,391	$	2,274	$	7,069	$	7,018
Occupancy and equipment	587		518		1,692		1,532
Professional services	402		295		980		909
Communications and data processing	358		344		1,064		1,038
Amortization of intangibles	20		24		58		60
Other non-interest expense:
Bankcard, regulatory and other fee assessments	59		62		257		197
Collections	89		89		259		261
Other	295		282		831		829
Total other non-interest expense	443		433		1,347		1,287
Total operating expense	$	4,201	$	3,888	$	12,210	$	11,844
Marketing	1,113		972		3,187		2,755
Total non-interest expense	$	5,314	$	4,860	$	15,397	$	14,599

_________

(1)Includes expenses of $36 million and $89 million related to our deferred compensation plan investments for the third quarter and first nine months of 2024, respectively, and benefit of $13 million and expense of $36 million related to our deferred compensation plan investments for the third quarter and first nine months of 2023, respectively. These amounts have corresponding offsets from investments in other non-interest income.

Non-interest expense increased by $454 million to $5.3 billion in the third quarter of 2024 compared to the third quarter of 2023 and increased by $798 million to $15.4 billion in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by growth in our Credit Card business and increased marketing spend.

For the three and nine months ended September 30, 2024, we have incurred $63 million and $94 million of integration expenses related to the agreement to acquire Discover, which are included in Operating Expense in our Consolidated Statements of Income.

17 Capital One Financial Corporation (COF)

Income Taxes

We recorded an income tax provision of $441 million (19.9% effective income tax rate) and $797 million (17.9% effective income tax rate) in the third quarter and first nine months of 2024, respectively, compared to an income tax provision of $432 million (19.4% effective income tax rate) and $932 million (18.2% effective income tax rate) in the third quarter and first nine months of 2023, respectively. Our effective tax rate on income from continuing operations varies between periods due, in part, to the impact of changes in pre-tax income and changes in tax credits, tax-exempt income and non-deductible expenses relative to our pre-tax earnings.    

We provide additional information on items affecting our income taxes and effective tax rate in “Part II—Item 8. Financial Statements and Supplementary Data—Note 15—Income Taxes” in our 2023 Form 10-K.

CONSOLIDATED BALANCE SHEETS ANALYSIS

Total assets increased by $8.0 billion to $486.4 billion as of September 30, 2024 from December 31, 2023 primarily driven by increases in our cash and securities available for sale balances, partially offset by an allowance build due to the Walmart Program Termination in the second quarter of 2024.

Total liabilities increased by $3.1 billion to $423.5 billion as of September 30, 2024 from December 31, 2023 primarily driven by deposit growth due to our national consumer banking strategy, partially offset by net maturities of our securitized debt obligations. Our national consumer banking strategy includes our national brand and marketing strategy, cafés, and tech / digital investments, which have enabled us to both deepen and grow our overall customer base.

Stockholders’ equity increased by $4.8 billion to $62.9 billion as of September 30, 2024 from December 31, 2023 primarily driven by net income of $3.7 billion.

The following is a discussion of material changes in the major components of our assets and liabilities during the first nine months of 2024. Period-end balance sheet amounts may vary from average balance sheet amounts due to the timing of normal balance sheet management activities that are intended to support our capital and liquidity positions, our market risk profile and the needs of our customers.

Investment Securities

Our investment securities portfolio consists of the following: U.S. government-sponsored enterprise or agency (“GSE” or “Agency”) and non-agency residential mortgage-backed securities (“RMBS”), agency commercial mortgage-backed securities (“CMBS”), U.S. Treasury securities and other securities. Agency securities include Government National Mortgage Association (“Ginnie Mae”) guaranteed securities, Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) issued securities. The carrying value of our investments in Agency and U.S. Treasury securities represented 96% and 97% of our total investment securities portfolio as of September 30, 2024 and December 31, 2023, respectively.

The fair value of our available for sale securities portfolio increased by $4.4 billion to $83.5 billion as of September 30, 2024 from December 31, 2023, primarily driven by net purchases and decreases in relevant benchmark interest rates. See “Part I—Item 1. Financial Statements—Note 3—Investment Securities” for more information.

18 Capital One Financial Corporation (COF)

Loans Held for Investment

Total loans held for investment consists of both unsecuritized loans and loans held in our consolidated trusts. Table 6 summarizes, by portfolio segment, the carrying value of our loans held for investment, the allowance for credit losses and net loan balance as of September 30, 2024 and December 31, 2023.

Table 6: Loans Held for Investment

	September 30, 2024						December 31, 2023
(Dollars in millions)	Loans		Allowance		Net Loans		Loans		Allowance		Net Loans
Credit Card	$	156,651	$	(12,989)	$	143,662	$	154,547	$	(11,709)	$	142,838
Consumer Banking	76,758		(2,015)		74,743		75,437		(2,042)		73,395
Commercial Banking	86,834		(1,530)		85,304		90,488		(1,545)		88,943
Total	$	320,243	$	(16,534)	$	303,709	$	320,472	$	(15,296)	$	305,176

Loans held for investment decreased by $229 million to $320.2 billion as of September 30, 2024 compared to December 31, 2023 primarily driven by customer payments outpacing originations in our commercial loan portfolio, partially offset by growth in our credit card and auto loan portfolios.

We provide additional information on the composition of our loan portfolio and credit quality in “Credit Risk Profile,” “Consolidated Results of Operations” and “Part I—Item 1. Financial Statements—Note 4—Loans.”

Funding Sources

Our primary source of funding comes from insured retail deposits, as they are a relatively stable and lower cost source of funding. In addition to deposits, we raise funding through the issuance of senior and subordinated notes, securitized debt obligations, federal funds purchased, securities loaned or sold under agreements to repurchase, and Federal Home Loan Bank (“FHLB”) advances secured by certain portions of our loan and securities portfolios.

Table 7 provides the composition of our primary sources of funding as of September 30, 2024 and December 31, 2023.

Table 7: Funding Sources Composition

	September 30, 2024				December 31, 2023
(Dollars in millions)	Amount		% of Total		Amount		% of Total
Deposits:
Consumer Banking	$	309,569	77	%	$	296,171	74	%
Commercial Banking	30,598		8		32,712		8
Other(1)	13,464		3		19,530		5
Total deposits	353,631		88		348,413		87
Securitized debt obligations	15,881		4		18,043		5
Other debt	33,455		8		31,813		8
Total funding sources	$	402,967	100	%	$	398,269	100	%

__________

(1)Includes brokered deposits of $12.4 billion and $18.5 billion as of September 30, 2024 and December 31, 2023, respectively.

Total deposits increased by $5.2 billion to $353.6 billion as of September 30, 2024 from December 31, 2023 primarily driven by our national consumer banking strategy, partially offset by maturities in brokered deposits.

As of September 30, 2024 and December 31, 2023, we held $62.1 billion and $64.2 billion, respectively, of estimated uninsured deposits. These amounts were primarily comprised of checking and savings deposits. These estimated uninsured deposits comprised approximately 18% of our total deposits as of both September 30, 2024 and December 31, 2023. We estimate our uninsured amounts based on methodologies and assumptions used for our “Consolidated Reports of Condition and Income” (Federal Financial Institutions Examination Council (“FFIEC”) 031) filed with the Federal Banking Agencies, adjusted to exclude certain items not presented within deposits on our consolidated balance sheet, including intercompany balances and cash collateral received on certain derivative contracts.

19 Capital One Financial Corporation (COF)

Securitized debt obligations decreased by $2.2 billion to $15.9 billion as of September 30, 2024 from December 31, 2023 primarily driven by net maturities and paydowns in our securitization programs.

Other debt increased by $1.6 billion to $33.5 billion as of September 30, 2024 from December 31, 2023 primarily driven by net issuances of unsecured senior debt.

We provide additional information on our funding sources in “Liquidity Risk Profile” and “Part I—Item 1. Financial Statements—Note 8—Deposits and Borrowings.”

20 Capital One Financial Corporation (COF)

OFF-BALANCE SHEET ARRANGEMENTS

In the ordinary course of business, we engage in certain activities that are not reflected on our consolidated balance sheets, generally referred to as off-balance sheet arrangements. These activities typically involve transactions with unconsolidated variable interest entities (“VIEs”) as well as other arrangements, such as letters of credit, loan commitments and guarantees, to meet the financing needs of our customers and support their ongoing operations. We provide additional information regarding these types of activities in “Part I—Item 1. Financial Statements—Note 6—Variable Interest Entities and Securitizations” and “Part I—Item 1. Financial Statements—Note 14—Commitments, Contingencies, Guarantees and Others.”

21 Capital One Financial Corporation (COF)

BUSINESS SEGMENT FINANCIAL PERFORMANCE

Our principal operations are organized for management reporting purposes into three major business segments, which are defined primarily based on the products and services provided or the types of customer served: Credit Card, Consumer Banking and Commercial Banking. The operations of acquired businesses have been integrated into or managed as a part of our existing business segments. Certain activities that are not part of a business segment are included in the Other category, such as the management of our corporate investment portfolio and asset/liability positions performed by our centralized Corporate Treasury group and any residual tax expense or benefit beyond what is assessed to our business segments in order to arrive at the consolidated effective tax rate. The Other category also includes unallocated corporate expenses that do not directly support the operations of the business segments or for which the business segments are not considered financially accountable in evaluating their performance, such as certain restructuring charges and integration expenses related to the agreement to acquire Discover.

The results of our individual businesses, which we report on a continuing operations basis, reflect the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources. We may periodically change our business segments or reclassify business segment results based on modifications to our management reporting methodologies and changes in organizational alignment. Our business segment results are intended to reflect each segment as if it were a stand-alone business. We use an internal management and reporting process to derive our business segment results. Our internal management and reporting process employs various allocation methodologies, including funds transfer pricing, to assign certain balance sheet assets, deposits and other liabilities and their related revenues and expenses directly or indirectly attributable to each business segment. Total interest income and non-interest income are directly attributable to the segment in which they are reported. The net interest income of each segment reflects the results of our funds transfer pricing process, which is primarily based on a matched funding concept that takes into consideration market interest rates. Our funds transfer pricing process is managed by our centralized Corporate Treasury group and provides a funds credit for sources of funds, such as deposits generated by our Consumer Banking and Commercial Banking businesses, and a charge for the use of funds by each segment. The allocation is unique to each business segment and acquired business and is based on the composition of assets and liabilities. The funds transfer pricing process considers the interest rate and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically, the methodology and assumptions utilized in the funds transfer pricing process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the business segments. We regularly assess the assumptions, methodologies and reporting classifications used for segment reporting, which may result in the implementation of refinements or changes in future periods. We provide additional information on the allocation methodologies used to derive our business segment results in “Part II—Item 8. Financial Statements and Supplementary Data—Note 17—Business Segments and Revenue from Contracts with Customers” in our 2023 Form 10-K.

We refer to the business segment results derived from our internal management accounting and reporting process as our “managed” presentation, which differs in some cases from our reported results prepared based on U.S. GAAP. There is no comprehensive authoritative body of guidance for management accounting equivalent to U.S. GAAP; therefore, the managed presentation of our business segment results may not be comparable to similar information provided by other financial services companies. In addition, our individual business segment results should not be used as a substitute for comparable results determined in accordance with U.S. GAAP.

We summarize our business segment results for the third quarter and first nine months of 2024 and 2023 and provide a comparative discussion of these results, as well as changes in our financial condition and credit performance metrics as of September 30, 2024 compared to December 31, 2023. We provide a reconciliation of our total business segment results to our reported consolidated results in “Part I—Item 1. Financial Statements—Note 13—Business Segments and Revenue from Contracts with Customers.”

22 Capital One Financial Corporation (COF)

Business Segment Financial Performance

Table 8 summarizes our business segment results, which we report based on total net revenue (loss) and net income (loss) from continuing operations, for the third quarter and first nine months of 2024 and 2023.

Table 8: Business Segment Results

	Three Months Ended September 30,
	2024						2023
	Total Net Revenue (Loss)(1)			Net Income (Loss)(2)			Total Net Revenue (Loss)(1)			Net Income (Loss)(2)
(Dollars in millions)	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
Credit Card	$	7,252	72%	$	1,374	77%	$	6,627	71%	$	1,266	71%
Consumer Banking	2,210		22	403		23	2,275		24	611		34
Commercial Banking(3)	888		9	263		15	909		10	214		12
Other(3)	(336)		(3)	(263)		(15)	(445)		(5)	(301)		(17)
Total	$	10,014	100%	$	1,777	100%	$	9,366	100%	$	1,790	100%

	Nine Months Ended September 30,
	2024						2023
	Total Net Revenue (Loss)(1)			Net Income (Loss)(2)			Total Net Revenue (Loss)(1)			Net Income (Loss)(2)
(Dollars in millions)	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
Credit Card	$	20,800	72%	$	2,426	66%	$	18,873	69%	$	2,672	64%
Consumer Banking	6,577		23	1,255		34	7,188		26	2,036		49
Commercial Banking(3)	2,648		9	821		22	2,658		10	468		11
Other(3)	(1,103)		(4)	(848)		(22)	(1,438)		(5)	(995)		(24)
Total	$	28,922	100%	$	3,654	100%	$	27,281	100%	$	4,181	100%

__________

(1)Total net revenue (loss) consists of net interest income and non-interest income.

(2)Net income (loss) for our business segments and the Other category is based on income (loss) from continuing operations, net of tax.

(3)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.

23 Capital One Financial Corporation (COF)

Credit Card Business

The primary sources of revenue for our Credit Card business are net interest income, net interchange income and fees collected from customers. Expenses primarily consist of the provision for credit losses, operating costs and marketing expenses.

Our Credit Card business generated net income from continuing operations of $1.4 billion and $2.4 billion in the third quarter and first nine months of 2024, respectively, and $1.3 billion and $2.7 billion in the third quarter and first nine months of 2023, respectively.

Table 9 summarizes the financial results of our Credit Card business and displays selected key metrics for the periods indicated.

Table 9: Credit Card Business Results

	Three Months Ended September 30,							Nine Months Ended September 30,
(Dollars in millions, except as noted)	2024			2023			Change	2024			2023			Change
Selected income statement data:
Net interest income	$	5,743		$	5,114		12%	$	16,309		$	14,498		12%
Non-interest income	1,509			1,513			—	4,491			4,375			3
Total net revenue(1)	7,252			6,627			9	20,800			18,873			10
Provision for credit losses	2,084			1,953			7	7,888			6,298			25
Non-interest expense	3,367			3,015			12	9,730			9,073			7
Income from continuing operations before income taxes	1,801			1,659			9	3,182			3,502			(9)
Income tax provision	427			393			9	756			830			(9)
Income from continuing operations, net of tax	$	1,374		$	1,266		9	$	2,426		$	2,672		(9)
Selected performance metrics:
Average loans held for investment	$	153,972		$	144,049		7	$	151,371		$	139,195		9
Average yield on loans(2)	19.66		%	19.02		%	64bps	19.10		%	18.40		%	70bps
Total net revenue margin(3)	18.82			18.40			42	18.28			18.08			20
Net charge-offs	$	2,154		$	1,592		35%	$	6,619		$	4,489		47%
Net charge-off rate	5.60		%	4.42		%	118bps	5.83		%	4.30		%	153bps
Purchase volume	$	166,203		$	158,640		5%	$	481,517		$	458,235		5%
(Dollars in millions, except as noted)	September 30, 2024			December 31, 2023			Change
Selected period-end data:
Loans held for investment	$	156,651		$	154,547		1%
30+ day performing delinquency rate	4.53		%	4.61		%	(8)bps
30+ day delinquency rate	4.54			4.62			(8)
Nonperforming loan rate(4)	0.01			0.01			—
Allowance for credit losses	$	12,989		$	11,709		11%
Allowance coverage ratio	8.29%			7.58		%	71bps

__________

(1)We recognize finance charges and fee income on open-ended loans in accordance with the contractual provisions of the credit arrangements and charge off any uncollectible amounts. Total net revenue was reduced by $624 million and $1.9 billion in the third quarter and first nine months of 2024, respectively, compared to $449 million and $1.3 billion in the third quarter and first nine months of 2023, respectively, for finance charges and fees charged-off as uncollectible.

(2)Average yield is calculated based on annualized interest income for the period divided by average loans during the period and does not include any allocations, such as funds transfer pricing.

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

(4)Within our credit card loan portfolio, only certain loans in our international card businesses are classified as nonperforming. See “Nonperforming Loans and Other Nonperforming Assets” for additional information.

24 Capital One Financial Corporation (COF)

Key factors affecting the results of our Credit Card business for the third quarter and first nine months of 2024 compared to the third quarter and first nine months of 2023, and changes in financial condition and credit performance between September 30, 2024 and December 31, 2023 include the following:

•Net Interest Income: Net interest income increased by $629 million to $5.7 billion in the third quarter of 2024 and increased by $1.8 billion to $16.3 billion in the first nine months of 2024 primarily driven by higher average loan balances and margins, including the impacts of the elimination of revenue sharing provisions due to the Walmart Program Termination.

•Non-Interest Income: Non-interest income remained substantially flat at $1.5 billion in the third quarter of 2024 compared to the third quarter of 2023. Non-interest income increased by $116 million to $4.5 billion in the first nine months of 2024 due to growth in our Credit Card business.

•Provision for Credit Losses: Provision for credit losses increased by $131 million to $2.1 billion in the third quarter of 2024 driven by higher net charge-offs, including the impacts of the elimination of loss sharing provisions due to the Walmart Program Termination, partially offset by an allowance release compared to an allowance build in the third quarter of 2023. Provision for credit losses increased by $1.6 billion to $7.9 billion in the first nine months of 2024 primarily driven by higher net charge-offs, partially offset by a lower allowance build.

•Non-Interest Expense: Non-interest expense increased by $352 million to $3.4 billion in the third quarter of 2024 and increased by $657 million to $9.7 billion in the first nine months of 2024 primarily driven by growth in our Credit Card business and increased marketing spend.

Loans Held for Investment:

•Period-end loans held for investment increased by $2.1 billion to $156.7 billion as of September 30, 2024 from December 31, 2023 primarily driven by growth across our portfolio.

•Average loans held for investment increased by $9.9 billion to $154.0 billion in the third quarter of 2024 compared to the third quarter of 2023 and increased by $12.2 billion to $151.4 billion in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by growth across our portfolio.

Net Charge-Off and Delinquency Metrics:

•The net charge-off rate increased by 118 bps to 5.60% in the third quarter of 2024 compared to the third quarter of 2023 and increased by 153 bps to 5.83% in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by higher principal charge-offs in our domestic credit card loan portfolio.

•The 30+ day delinquency rate decreased by 8 bps to 4.54% as of September 30, 2024 from December 31, 2023 primarily driven by higher ending loan balances.

25 Capital One Financial Corporation (COF)

Domestic Card Business

The Domestic Card business generated net income from continuing operations of $1.3 billion and $2.3 billion in the third quarter and first nine months of 2024, respectively, and $1.2 billion and $2.6 billion in the third quarter and first nine months of 2023, respectively. In the third quarter and first nine months of 2024 and 2023, the Domestic Card business accounted for greater than 90% of total net revenue of our Credit Card business.

Table 9.1 summarizes the financial results for our Domestic Card business and displays selected key metrics for the periods indicated.

Table 9.1: Domestic Card Business Results

	Three Months Ended September 30,							Nine Months Ended September 30,
(Dollars in millions, except as noted)	2024			2023			Change	2024			2023			Change
Selected income statement data:
Net interest income	$	5,434		$	4,827		13%	$	15,407		$	13,670		13%
Non-interest income	1,438			1,445			—	4,289			4,174			3
Total net revenue(1)	6,872			6,272			10	19,696			17,844			10
Provision for credit losses	1,997			1,861			7	7,589			6,030			26
Non-interest expense	3,149			2,810			12	9,120			8,462			8
Income from continuing operations before income taxes	1,726			1,601			8	2,987			3,352			(11)
Income tax provision	407			378			8	705			791			(11)
Income from continuing operations, net of tax	$	1,319		$	1,223		8	$	2,282		$	2,561		(11)
Selected performance metrics:
Average loans held for investment	$	147,021		$	137,500		7	$	144,560		$	132,889		9
Average yield on loans(2)	19.62		%	18.96%			66bps	19.04		%	18.31		%	73bps
Total net revenue margin(3)(4)	18.67			18.24			43	18.12			17.90			22
Net charge-offs	$	2,063		$	1,512		36%	$	6,356		$	4,262		49%
Net charge-off rate(5)	5.61%			4.40%			121bps	5.86		%	4.28		%	158bps
Purchase volume	$	162,281		$	154,880		5%	$	470,347		$	447,374		5%
(Dollars in millions, except as noted)	September 30, 2024			December 31, 2023			Change
Selected period-end data:
Loans held for investment	$	149,400		$	147,666		1%
30+ day performing delinquency rate	4.53		%	4.61		%	(8)bps
Allowance for credit losses	$	12,494		$	11,261		11%
Allowance coverage ratio(6)	8.36		%	7.63		%	73bps

__________

(1)We recognize finance charges and fee income on open-ended loans in accordance with the contractual provisions of the credit arrangements and charge off any uncollectible amounts. Finance charges and fees charged off as uncollectible are reflected as a reduction in total net revenue.

(2)Average yield is calculated based on annualized interest income for the period divided by average loans during the period and does not include any allocations, such as funds transfer pricing.

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

(4)The Walmart Program Termination increased revenue margin by 51 bps and 21 bps in the third quarter and nine months ended September 30, 2024, respectively.

(5)The Walmart Program Termination increased the Domestic Card net charge-off rate by 38 bps and 19 bps in the third quarter and nine months ended September 30, 2024, respectively.

(6)The Walmart Program Termination resulted in an allowance for credit losses build in Domestic Card of $826 million in the second quarter of 2024.

Because our Domestic Card business accounts for the substantial majority of our Credit Card business, the key factors driving the results are similar to the key factors affecting our total Credit Card business. Net income for our Domestic Card business increased in the third quarter of 2024 compared to the third quarter of 2023 primarily driven by:

26 Capital One Financial Corporation (COF)

•Higher net interest income primarily driven by higher average loan balances and margins, including the impacts of the elimination of revenue sharing provisions due to the Walmart Program Termination.

These drivers were partially offset by:

•Higher non-interest expense primarily driven by growth in our Credit Card business and increased marketing spend.

•Higher provision for credit losses driven by higher net charge-offs, including the impacts of the elimination of loss sharing provisions due to the Walmart Program Termination, partially offset by an allowance release compared to an allowance build in the third quarter of 2023.

Net income for our Domestic Card business decreased in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by:

•Higher provision for credit losses primarily driven by higher net charge-offs, partially offset by a lower allowance build.

•Higher non-interest expense primarily driven by growth in our Credit Card business and increased marketing spend.

These drivers were partially offset by:

•Higher net interest income primarily driven by higher average loan balances and margins, including the impacts of the elimination of revenue sharing provisions due to the Walmart Program Termination.

Consumer Banking Business

The primary sources of revenue for our Consumer Banking business are net interest income from loans and deposits as well as service charges and customer-related fees. Expenses primarily consist of the provision for credit losses, operating costs and marketing expenses.

Our Consumer Banking business generated net income from continuing operations of $403 million and $1.3 billion in the third quarter and first nine months of 2024, respectively, and $611 million and $2.0 billion in the third quarter and first nine months of 2023, respectively.

Table 10 summarizes the financial results of our Consumer Banking business and displays selected key metrics for the periods indicated.

Table 10: Consumer Banking Business Results

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in millions, except as noted)	2024		2023		Change	2024		2023		Change
Selected income statement data:
Net interest income	$	2,028	$	2,133	(5)%	$	6,064	$	6,762	(10)%
Non-interest income	182		142		28	513		426		20
Total net revenue	2,210		2,275		(3)	6,577		7,188		(9)
Provision for credit losses	351		213		65	1,107		747		48
Non-interest expense	1,331		1,262		5	3,827		3,776		1
Income from continuing operations before income taxes	528		800		(34)	1,643		2,665		(38)
Income tax provision	125		189		(34)	388		629		(38)
Income from continuing operations, net of tax	$	403	$	611	(34)	$	1,255	$	2,036	(38)

27 Capital One Financial Corporation (COF)

Selected performance metrics:
Average loans held for investment:
Auto	$	74,920		$	75,740		(1)	$	74,264		$	76,473		(3)
Retail banking	1,262			1,414			(11)	1,291			1,469			(12)
Total consumer banking	$	76,182		$	77,154		(1)	$	75,555		$	77,942		(3)
Average yield on loans held for investment(1)	8.88		%	7.97%			91bps	8.59		%	7.67%			92bps
Average deposits	$	306,121		$	287,457		6%	$	300,475		$	283,991		6%
Average deposits interest rate	3.33		%	2.85		%	48bps	3.23		%	2.43		%	80bps
Net charge-offs	$	401		$	349		15%	$	1,134		$	935		21%
Net charge-off rate	2.11		%	1.81		%	30bps	2.00		%	1.60		%	40bps
Auto loan originations	$	9,158		$	7,452		23%	$	25,143		$	20,823		21%
(Dollars in millions, except as noted)	September 30, 2024			December 31, 2023			Change
Selected period-end data:
Loans held for investment:
Auto	$	75,505		$	74,075		2%
Retail banking	1,253			1,362			(8)
Total consumer banking	$	76,758		$	75,437		2
30+ day performing delinquency rate	5.53		%	6.25		%	(72)bps
30+ day delinquency rate	6.31			7.08			(77)
Nonperforming loan rate	0.93			1.00			(7)
Nonperforming asset rate(2)	1.01			1.09			(8)
Allowance for credit losses	$	2,015		$	2,042		(1)%
Allowance coverage ratio	2.63		%	2.71		%	(8)bps
Deposits	$	309,569		$	296,171		5%

_________

(1)Average yield is calculated based on annualized interest income for the period divided by average loans during the period and does not include any allocations, such as funds transfer pricing.

(2)Nonperforming assets primarily consist of nonperforming loans and repossessed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment and repossessed assets.

Key factors affecting the results of our Consumer Banking business for the third quarter and first nine months of 2024 compared to the third quarter and first nine months of 2023, and changes in financial condition and credit performance between September 30, 2024 and December 31, 2023 include the following:

•Net Interest Income: Net interest income decreased by $105 million to $2.0 billion in the third quarter of 2024 and decreased by $698 million to $6.1 billion in the first nine months of 2024 primarily driven by lower margins in our retail banking business, partially offset by higher deposits in our retail banking business.

•Non-Interest Income: Non-interest income increased by $40 million to $182 million in the third quarter of 2024 and increased by $87 million to $513 million in the first nine months of 2024 primarily driven by higher interchange revenue from an increase in debit card purchase volume and revenue earned from auto industry services.

•Provision for Credit Losses: Provision for credit losses increased by $138 million to $351 million in the third quarter of 2024 and increased by $360 million to $1.1 billion in the first nine months of 2024 primarily driven by higher net charge-offs and a smaller allowance release in our auto loan portfolio.

•Non-Interest Expense: Non-interest expense remained substantially flat at $1.3 billion in the third quarter of 2024 compared to the third quarter of 2023 and $3.8 billion in the first nine months of 2024 compared to the first nine months of 2023.

28 Capital One Financial Corporation (COF)

Loans Held for Investment: 

•Period-end loans held for investment increased by $1.3 billion to $76.8 billion as of September 30, 2024 from December 31, 2023 primarily driven by growth in our auto loan portfolio.

•Average loans held for investment decreased by $972 million to $76.2 billion in the third quarter of 2024 compared to the third quarter of 2023 and decreased by $2.4 billion to $75.6 billion in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by the impact of lower auto originations in the second half of 2022 and throughout 2023.

Deposits: 

•Period-end deposits increased by $13.4 billion to $309.6 billion as of September 30, 2024 from December 31, 2023 primarily driven by continued growth from our national consumer banking strategy.

Net Charge-Off and Delinquency Metrics: 

•The net charge-off rate increased by 30 bps to 2.11% in the third quarter of 2024 compared to the third quarter of 2023 and increased by 40 bps to 2.00% in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by higher net charge-offs in our auto loan portfolio.

•The 30+ day delinquency rate decreased by 77 bps to 6.31% as of September 30, 2024 compared to December 31, 2023 primarily driven by lower auto delinquency inventories.

Commercial Banking Business

The primary sources of revenue for our Commercial Banking business are net interest income from loans and deposits and non-interest income earned from products and services provided to our clients such as advisory services, capital markets and treasury management. Because our Commercial Banking business has loans and investments that generate tax-exempt income, tax credits or other tax benefits, we present the revenues on a taxable-equivalent basis. Expenses primarily consist of the provision for credit losses and operating costs.

Our Commercial Banking business generated net income from continuing operations of $263 million and $821 million in the third quarter and first nine months of 2024, respectively, and $214 million and $468 million in the third quarter and first nine months of 2023, respectively.

29 Capital One Financial Corporation (COF)

Table 11 summarizes the financial results of our Commercial Banking business and displays selected key metrics for the periods indicated.

Table 11: Commercial Banking Business Results

	Three Months Ended September 30,							Nine Months Ended September 30,
(Dollars in millions, except as noted)	2024			2023			Change	2024			2023			Change
Selected income statement data:
Net interest income	$	596		$	621		(4)%	$	1,804		$	1,901		(5)%
Non-interest income	292			288			1	844			757			11
Total net revenue(1)	888			909			(2)	2,648			2,658			—
Provision for credit losses(2)	48			116			(59)	80			521			(85)
Non-interest expense	495			512			(3)	1,493			1,524			(2)
Income from continuing operations before income taxes	345			281			23	1,075			613			75
Income tax provision	82			67			22	254			145			75
Income from continuing operations, net of tax	$	263		$	214		23	$	821		$	468		75
Selected performance metrics:
Average loans held for investment:
Commercial and multifamily real estate	$	32,416		$	35,964		(10)	$	33,505		$	36,796		(9)
Commercial and industrial	55,685			55,592			—	55,496			56,142			(1)
Total commercial banking	$	88,101		$	91,556		(4)	$	89,001		$	92,938		(4)
Average yield on loans held for investment(1)(3)	7.25		%	7.16		%	9bps	7.21		%	6.73		%	48bps
Average deposits	$	30,365		$	37,279		(19)%	$	31,004		$	38,383		(19)%
Average deposits interest rate	2.55		%	2.93		%	(38)bps	2.58		%	2.65		%	(7)bps
Net charge-offs	$	49		$	58		(16)%	$	111		$	457		(76)%
Net charge-off rate	0.22		%	0.25		%	(3)bps	0.17		%	0.66		%	(49)bps
(Dollars in millions, except as noted)	September 30, 2024			December 31, 2023			Change
Selected period-end data:
Loans held for investment:
Commercial and multifamily real estate	$	32,199		$	34,446		(7)%
Commercial and industrial	54,635			56,042			(3)
Total commercial banking	$	86,834		$	90,488		(4)
Nonperforming loan rate	1.55		%	0.84		%	71bps
Nonperforming asset rate(4)	1.55			0.84			71
Allowance for credit losses(2)	$	1,530		$	1,545		(1)%
Allowance coverage ratio	1.76		%	1.71		%	5bps
Deposits	$	30,598		$	32,712		(6)%
Loans serviced for others	53,162			52,341			2

__________

(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(2)The provision for losses on unfunded lending commitments is included in the provision for credit losses in our consolidated statements of income and the related reserve is included in other liabilities on our consolidated balance sheets. Our reserve for unfunded lending commitments totaled $142 million and $158 million as of September 30, 2024 and December 31, 2023, respectively.

(3)Average yield is calculated based on annualized interest income for the period divided by average loans during the period and does not include any allocations, such as funds transfer pricing.

(4)Nonperforming assets consist of nonperforming loans and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment and other foreclosed assets.

30 Capital One Financial Corporation (COF)

Key factors affecting the results of our Commercial Banking business for the third quarter and first nine months of 2024 compared to the third quarter and first nine months of 2023, and changes in financial condition and credit performance between September 30, 2024 and December 31, 2023 include the following:

•Net Interest Income: Net interest income decreased by $25 million to $596 million in the third quarter of 2024 and decreased by $97 million to $1.8 billion in the first nine months of 2024 primarily driven by lower average loan balances.

•Non-Interest Income: Non-interest income remained substantially flat at $292 million in the third quarter of 2024 compared to the third quarter of 2023. Non-interest income increased by $87 million to $844 million in the first nine months of 2024 primarily driven by our capital markets business.

•Provision for Credit Losses: Provision for credit losses decreased by $68 million to $48 million in the third quarter of 2024 primarily driven by an allowance release compared to an allowance build in the third quarter of 2023. Provision for credit losses decreased by $441 million to $80 million in the first nine months of 2024 primarily driven by lower net charge-offs in our office real estate portfolio.

•Non-Interest Expense: Non-interest expense remained substantially flat at $495 million in the third quarter of 2024 compared to the third quarter of 2023 and at $1.5 billion in the first nine months of 2024 compared to the first nine months of 2023.

Loans Held for Investment:

•Period-end loans held for investment decreased by $3.7 billion to $86.8 billion as of September 30, 2024 from December 31, 2023 primarily driven by customer payments outpacing originations.

•Average loans held for investment decreased by $3.5 billion to $88.1 billion in the third quarter of 2024 and decreased by $3.9 billion to $89.0 billion in the first nine months of 2024 primarily driven by customer payments outpacing originations.

Deposits:

•Period-end deposits decreased by $2.1 billion to $30.6 billion as of September 30, 2024 from December 31, 2023 primarily driven by an intentional reduction in lower margin deposit balances.

Net Charge-Off and Nonperforming Metrics:

•The net charge-off rate remained substantially flat at 0.22% in the third quarter of 2024. The net charge-off rate decreased by 49 bps to 0.17% in the first nine months of 2024 primarily driven by lower net charge-offs in our office real estate portfolio.

•The nonperforming loan rate increased by 71 bps to 1.55% as of September 30, 2024 compared to December 31, 2023 primarily driven by credit downgrades.

Other Category

Other includes unallocated amounts related to our centralized Corporate Treasury group activities, such as management of our corporate investment securities portfolio, asset/liability management and oversight of our funds transfer pricing process. Other also includes:

•unallocated corporate revenue and expenses that do not directly support the operations of the business segments or for which the business segments are not considered financially accountable in evaluating their performance, such as certain restructuring charges and integration expenses related to the agreement to acquire Discover;

•offsets related to certain line-item reclassifications;

•residual tax expense or benefit to arrive at the consolidated effective tax rate that is not assessed to our primary business segments; and

•foreign exchange-rate fluctuations on foreign currency-denominated balances.

31 Capital One Financial Corporation (COF)

Table 12 summarizes the financial results of our Other category for the periods indicated.

Table 12: Other Category Results

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in millions)	2024		2023		Change	2024		2023		Change
Selected income statement data:
Net interest loss	$	(291)	$	(445)	(35)%	$	(1,067)	$	(1,439)	(26)%
Non-interest income (loss)	(45)		—		**	(36)		1		**
Total net income(1)	(336)		(445)		(24)	(1,103)		(1,438)		(23)
Provision for credit losses	(1)		2		**	(1)		3		**
Non-interest expense	121		71		70	347		226		54
Loss from continuing operations before income taxes	(456)		(518)		(12)	(1,449)		(1,667)		(13)
Income tax benefit	(193)		(217)		(11)	(601)		(672)		(11)
Loss from continuing operations, net of tax	$	(263)	$	(301)	(13)	$	(848)	$	(995)	(15)

__________

(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

** Not meaningful.

Loss from continuing operations decreased by $38 million to a loss of $263 million in the third quarter of 2024 compared to the third quarter of 2023 and decreased by $147 million to a loss of $848 million in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by higher treasury income.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in accordance with U.S. GAAP requires management to make a number of judgments, estimates and assumptions that affect the amount of assets, liabilities, income and expenses on the consolidated financial statements. Understanding our accounting policies and the extent to which we use management judgment and estimates in applying these policies is integral to understanding our financial statements. We provide a summary of our significant accounting policies under “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K.

We have identified the following accounting estimates as critical because they require significant judgments and assumptions about highly complex and inherently uncertain matters and the use of reasonably different estimates and assumptions could have a material impact on our results of operations or financial condition. Our critical accounting policies and estimates are as follows:

•Loan loss reserves

•Goodwill

•Fair value

•Customer rewards reserve

We evaluate our critical accounting estimates and judgments on an ongoing basis and update them as necessary, based on changing conditions. There have been no changes to our critical accounting policies and estimates described in our 2023 Form 10-K under “Part II—Item 7. MD&A—Critical Accounting Policies and Estimates.”

32 Capital One Financial Corporation (COF)

ACCOUNTING CHANGES AND DEVELOPMENTS

Accounting Standards Issued but Not Adopted as of September 30, 2024

Standard	Guidance	Adoption Timing and Financial Statement Impacts
Income Tax Disclosures Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures Issued December 2023	Requires entities to annually provide additional information in the income tax rate reconciliation and make additional disclosures about income taxes paid.	Effective beginning with our annual period ending on December 31, 2025, with early adoption permitted. Prospective application is required and retrospective application is also permitted. We plan to adopt this standard for the above annual period and to apply the new requirements prospectively. We expect such adoption to result in additional information being included in our income tax footnote and consolidated statements of cash flows.
Segment Reporting Disclosures ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures Issued November 2023	Requires disclosure of incremental segment information on an annual and interim basis.	Effective beginning with our annual period ending on December 31, 2024 and interim periods within fiscal years beginning January 1, 2025, with early adoption permitted. Retrospective application is required. We plan to adopt this standard for the above annual period and to apply the new requirements retrospectively. We are still assessing the extent of the impacts of adoption to the disclosures in our business segment footnote.

33 Capital One Financial Corporation (COF)

CAPITAL MANAGEMENT

The level and composition of our capital are determined by multiple factors, including our consolidated regulatory capital requirements as described in more detail below and internal risk-based capital assessments such as internal stress testing. The level and composition of our capital may also be influenced by rating agency guidelines, subsidiary capital requirements, business environment, conditions in the financial markets and assessments of potential future losses due to adverse changes in our business and market environments.

Capital Standards and Prompt Corrective Action

The Company and the Bank are subject to the regulatory capital requirements established by the Board of Governors of the Federal Reserve System (“Federal Reserve”) and the Office of the Comptroller of the Currency (“OCC”), respectively (the “Basel III Capital Rules”). The Basel III Capital Rules implement certain capital requirements published by the Basel Committee on Banking Supervision (“Basel Committee”), along with certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) and other capital provisions.

As a bank holding company (“BHC”) with total consolidated assets of at least $250 billion but less than $700 billion and not exceeding any of the applicable risk-based thresholds, the Company is a Category III institution under the Basel III Capital Rules.

The Bank, as a subsidiary of a Category III institution, is a Category III bank. Moreover, the Bank, as an insured depository institution, is subject to prompt corrective action (“PCA”) capital regulations.

Basel III and U.S. Capital Rules

Under the Basel III Capital Rules, we must maintain a minimum CET1 capital ratio of 4.5%, a Tier 1 capital ratio of 6.0% and a total capital ratio of 8.0%, in each case in relation to risk-weighted assets. In addition, we must maintain a minimum leverage ratio of 4.0% and a minimum supplementary leverage ratio of 3.0%. We are also subject to the capital conservation buffer requirement and countercyclical capital buffer requirement, each as described below. Our capital and leverage ratios are calculated based on the Basel III standardized approach framework.

We have elected to exclude certain elements of accumulated other comprehensive income (“AOCI”) from our regulatory capital as permitted for a Category III institution. For information on the recognition of AOCI in regulatory capital under the proposed changes to the Basel III Capital Rules, see “Part I—Item 1. Business—Supervision and Regulation—Prudential Regulation of Banking—Capital and Stress Testing Regulation—Basel III Finalization Proposal” in our 2023 Form 10-K.

Global systemically important banks (“G-SIBs”) that are based in the U.S. are subject to an additional CET1 capital requirement known as the “G-SIB Surcharge.” We are not a G-SIB based on the most recent available data and thus we are not subject to a G-SIB Surcharge.

Stress Capital Buffer Rule

The Basel III Capital Rules require banking institutions to maintain a capital conservation buffer, composed of CET1 capital, above the regulatory minimum ratios. Under the Federal Reserve’s final rule to implement the stress capital buffer requirement (“Stress Capital Buffer Rule”), the Company’s “standardized approach capital conservation buffer” includes its stress capital buffer requirement (as described below), any G-SIB Surcharge (which is not applicable to us) and the countercyclical capital buffer requirement (which is currently set at 0%). Any determination to increase the countercyclical capital buffer generally would be effective twelve months after the announcement of such an increase, unless the Federal Reserve, OCC and the Federal Deposit Insurance Corporation (“FDIC”), hereafter collectively referred to as the “Federal Banking Agencies,” set an earlier effective date.

The Company’s stress capital buffer requirement is recalibrated every year based on the Company’s supervisory stress test results. In particular, the Company’s stress capital buffer requirement equals, subject to a floor of 2.5%, the sum of (i) the difference between the Company’s starting CET1 capital ratio and its lowest projected CET1 capital ratio under the severely adverse scenario of the Federal Reserve’s supervisory stress test plus (ii) the ratio of the Company’s projected four quarters of common stock dividends (for the fourth to seventh quarters of the planning horizon) to the projected risk-weighted assets for the quarter in which the Company’s projected CET1 capital ratio reaches its minimum under the supervisory stress test.

34 Capital One Financial Corporation (COF)

Based on the Company’s 2023 supervisory stress test results, the Company’s stress capital buffer requirement for the period beginning on October 1, 2023 through September 30, 2024 was 4.8%. Therefore, the Company’s minimum capital requirements plus the standardized approach capital conservation buffer for CET1 capital, Tier 1 capital and total capital ratios under the stress capital buffer framework were 9.3%, 10.8% and 12.8%, respectively, for the period from October 1, 2023 through September 30, 2024.

Based on the Company’s 2024 supervisory stress test results, the Company’s stress capital buffer requirement for the period beginning on October 1, 2024 through September 30, 2025 is 5.5%. Therefore, the Company’s minimum capital requirements plus the standardized approach capital conservation buffer for CET1 capital, Tier 1 capital and total capital ratios under the stress capital buffer framework are 10.0%, 11.5% and 13.5%, respectively, for the period from October 1, 2024 through September 30, 2025.

The Stress Capital Buffer Rule does not apply to the Bank. Pursuant to the OCC’s capital regulations, which are only applicable to the Bank, the capital conservation buffer for the Bank continues to be fixed at 2.5%. Accordingly, the Bank’s minimum capital requirements plus its capital conservation buffer for CET1 capital, Tier 1 capital and total capital ratios are 7.0%, 8.5% and 10.5%, respectively.

If the Company or the Bank fails to maintain its capital ratios above the minimum capital requirements plus the applicable capital conservation buffer requirements, it will face increasingly strict automatic limitations on capital distributions and discretionary bonus payments to certain executive officers.

As of September 30, 2024 and December 31, 2023, respectively, the Company and the Bank each exceeded the minimum capital requirements and the capital conservation buffer requirements applicable to them, and the Company and the Bank were each “well-capitalized.” The “well-capitalized” standards applicable to the Company are established in the Federal Reserve’s regulations, and the “well-capitalized” standards applicable to the Bank are established in the OCC’s PCA capital requirements.

CECL Transition Rule

The Federal Banking Agencies adopted a final rule (the “CECL Transition Rule”) that provides banking institutions an optional five-year transition period to phase in the impact of the current expected credit losses (“CECL”) standard on their regulatory capital (“CECL Transition Election”). We adopted the CECL standard (for accounting purposes) as of January 1, 2020, and made the CECL Transition Election (for regulatory capital purposes) in the first quarter of 2020. Therefore, the applicable amounts presented in this Report reflect such election.

Pursuant to the CECL Transition Rule, a banking institution could elect to delay the estimated impact of adopting CECL on its regulatory capital through December 31, 2021 and then phase in the estimated cumulative impact from January 1, 2022 through December 31, 2024. For the “day 2” ongoing impact of CECL during the initial two years, the Federal Banking Agencies used a uniform “scaling factor” of 25% as an approximation of the increase in the allowance under the CECL standard compared to the prior incurred loss methodology. Accordingly, from January 1, 2020 through December 31, 2021, electing banking institutions were permitted to add back to their regulatory capital an amount equal to the sum of the after-tax “day 1” CECL adoption impact and 25% of the increase in the allowance since the adoption of the CECL standard. From January 1, 2022 through December 31, 2024, the after-tax “day 1” CECL adoption impact and the cumulative “day 2” ongoing impact are being phased in to regulatory capital at 25% per year. The following table summarizes the capital impact delay and phase in period on our regulatory capital from years 2020 to 2025.

	Capital Impact Delayed		Phase In Period
	2020	2021	2022	2023	2024	2025
“Day 1” CECL adoption impact	Capital impact delayed to 2022		25% Phased In	50% Phased In	75% Phased In	Fully Phased In
Cumulative “day 2” ongoing impact	25% scaling factor as an approximation of the increase in allowance under CECL

As of December 31, 2021, we added back an aggregate amount of $2.4 billion to our regulatory capital pursuant to the CECL Transition Rule. Consistent with the rule, we have phased in 75% of this amount as of January 1, 2024. The remaining $600 million will be phased in on January 1, 2025. As of September 30, 2024, the Company’s CET1 capital ratio, reflecting the

35 Capital One Financial Corporation (COF)

CECL Transition Rule, was 13.6% and would have been 13.4% excluding the impact of the CECL Transition Rule (or “on a fully phased-in basis”).

Market Risk Rule

The “Market Risk Rule” supplements the Basel III Capital Rules by requiring institutions subject to the rule to adjust their risk-based capital ratios to reflect the market risk in their trading book. The Market Risk Rule generally applies to institutions with aggregate trading assets and liabilities equal to 10% or more of total assets or $1 billion or more. As of September 30, 2024, the Company and the Bank are subject to the Market Risk Rule. See “Market Risk Profile” below for additional information.

For the description of the regulatory capital rules to which we are subject, including recent proposed amendments to these rules under the Basel III Finalization Proposal, see “Part I—Item 1. Business—Supervision and Regulation” in our 2023 Form 10-K.

Table 13 provides a comparison of our regulatory capital ratios under the Basel III standardized approach, the regulatory minimum capital adequacy ratios and the applicable well-capitalized standards as of September 30, 2024 and December 31, 2023.

Table 13: Capital Ratios Under Basel III(1)(2)

	September 30, 2024						December 31, 2023
	Ratio		Minimum Capital Adequacy		Well- Capitalized		Ratio		Minimum Capital Adequacy		Well- Capitalized
Capital One Financial Corp:
Common equity Tier 1 capital(3)	13.6	%	4.5	%	N/A		12.9	%	4.5	%	N/A
Tier 1 capital(4)	14.9		6.0		6.0	%	14.2		6.0		6.0	%
Total capital(5)	16.6		8.0		10.0		16.0		8.0		10.0
Tier 1 leverage(6)	11.6		4.0		N/A		11.2		4.0		N/A
Supplementary leverage(7)	9.9		3.0		N/A		9.6		3.0		N/A
CONA:
Common equity Tier 1 capital(3)	14.0		4.5		6.5		13.1		4.5		6.5
Tier 1 capital(4)	14.0		6.0		8.0		13.1		6.0		8.0
Total capital(5)	15.6		8.0		10.0		14.3		8.0		10.0
Tier 1 leverage(6)	10.9		4.0		5.0		10.3		4.0		5.0
Supplementary leverage(7)	9.3		3.0		N/A		8.8		3.0		N/A

__________

(1)Capital requirements that are not applicable are denoted by “N/A.”

(2)Ratios as of September 30, 2024 are preliminary and therefore subject to change until we file our September 30, 2024 Form FR Y-9C—Consolidated Financial Statements for Holding Companies and Call Reports.

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

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

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

(6)Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.

(7)Supplementary leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by total leverage exposure.

36 Capital One Financial Corporation (COF)

Table 14 presents regulatory capital under the Basel III standardized approach and regulatory capital metrics as of September 30, 2024 and December 31, 2023.

Table 14: Regulatory Risk-Based Capital Components and Regulatory Capital Metrics

(Dollars in millions)	September 30, 2024		December 31, 2023
Regulatory capital under Basel III standardized approach
Common equity excluding AOCI	$	64,966	$	62,710
Adjustments and deductions:
AOCI, net of tax(1)	58		27
Goodwill, net of related deferred tax liabilities	(14,816)		(14,811)
Other intangible and deferred tax assets, net of deferred tax liabilities	(252)		(311)
Common equity Tier 1 capital	49,956		47,615
Tier 1 capital instruments	4,845		4,845
Tier 1 capital	54,801		52,460
Tier 2 capital instruments	1,612		1,936
Qualifying allowance for credit losses	4,738		4,728
Tier 2 capital	6,350		6,664
Total capital	$	61,151	$	59,124
Regulatory capital metrics
Risk-weighted assets	$	368,199	$	369,206
Adjusted average assets(2)	473,146		467,553
Total leverage exposure(3)	553,624		546,909

__________

(1)Excludes certain components of AOCI in accordance with rules applicable to Category III institutions. See “Capital Management—Capital Standards and Prompt Corrective Action—Basel III and U.S. Capital Rules” in this Report.

(2)Includes on-balance sheet asset adjustments subject to deduction from Tier 1 capital under the Basel III Capital Rules.

(3)Reflects on- and off-balance sheet amounts for the denominator of the supplementary leverage ratio as set forth by the Basel III Capital Rules.

Capital Planning and Regulatory Stress Testing

We repurchased $150 million of shares of our common stock during the third quarter of 2024 and $403 million of shares of our common stock during the first nine months of 2024.

On August 28, 2024, the Federal Reserve confirmed and announced individual stress capital buffer requirements for all large banking institutions, including the Company. The Company’s final stress capital buffer requirement for the period beginning on October 1, 2024 through September 30, 2025 is 5.5%. Therefore, the Company’s minimum capital requirements plus the standardized approach capital conservation buffer for CET1 capital, Tier 1 capital and total capital ratios under the stress capital buffer framework are 10.0%, 11.5% and 13.5%, respectively, for the period from October 1, 2024 through September 30, 2025.

For the description of the regulatory capital planning rules and stress testing requirements to which we are subject, see “Part I—Item 1. Business—Supervision and Regulation” in our 2023 Form 10-K.

The Federal Reserve’s capital plan rule provides that if a BHC determines there has been or will be a material change in its risk profile, financial condition, or corporate structure since it last submitted the capital plan, it must update and resubmit its capital plan within 30 calendar days, subject to a potential 60-day extension. We determined that our proposed acquisition of Discover constitutes a material change and submitted an updated capital plan as required by the capital plan rule. The capital plan rule further provides that upon the occurrence of an event requiring resubmission, a BHC may not make any capital distribution unless it has received approval of the Federal Reserve. Accordingly, all our capital distributions are now subject to the prior approval of the Federal Reserve pending the Federal Reserve’s consideration of our resubmitted capital plan. We have received prior approval of the Federal Reserve to make certain capital distributions.

37 Capital One Financial Corporation (COF)

Dividend Policy and Stock Purchases

In the first nine months of 2024, we declared and paid common stock dividends of $705 million, or $1.80 per share, and preferred stock dividends of $171 million. Pursuant to the terms of the Merger Agreement, we are restricted from paying quarterly cash dividends on our common stock in excess of $0.60 per share per quarter until the Transaction is completed or the Merger Agreement is terminated.

The following table summarizes the dividends paid per share on our various preferred stock series in the first nine months of 2024.

Table 15: Preferred Stock Dividends Paid Per Share

Series	Description	Issuance Date	Per Annum Dividend Rate	Dividend Frequency	2024
					Q3	Q2	Q1
Series I	5.000% Non-Cumulative	September 11, 2019	5.000%	Quarterly	$12.50	$12.50	$12.50
Series J	4.800% Non-Cumulative	January 31, 2020	4.800	Quarterly	12.00	12.00	12.00
Series K	4.625% Non-Cumulative	September 17, 2020	4.625	Quarterly	11.56	11.56	11.56
Series L	4.375% Non-Cumulative	May 4, 2021	4.375	Quarterly	10.94	10.94	10.94
Series M	3.950% Fixed Rate Reset Non-Cumulative	June 10, 2021	3.950% through 8/31/2026; resets 9/1/2026 and every subsequent 5 year anniversary at 5-Year Treasury Rate +3.157%	Quarterly	9.88	9.88	9.88
Series N	4.250% Non-Cumulative	July 29, 2021	4.250	Quarterly	10.63	10.63	10.63

The declaration and payment of dividends to our stockholders, as well as the amount thereof, are subject to the discretion of our Board of Directors and depend upon our results of operations, financial condition, capital levels, cash requirements, future prospects, regulatory requirements and other factors deemed relevant by the Board of Directors. For additional information related to capital distributions as a result of the capital plan resubmission, see “Capital Management—Capital Planning and Regulatory Stress Testing” in this Report.

As a BHC, our ability to pay dividends is largely dependent upon the receipt of dividends or other payments from our subsidiaries. The Bank is subject to regulatory restrictions that limit its ability to transfer funds to our BHC. As of September 30, 2024, funds available for dividend payments from the Bank were $9.2 billion. There can be no assurance that we will declare and pay any dividends to stockholders.

We repurchased $150 million of shares of our common stock during the third quarter of 2024 and $403 million of shares of our common stock during the first nine months of 2024. The timing and exact amount of any future common stock repurchases will depend on various factors, including regulatory approval, market conditions, opportunities for growth, our capital position and the amount of retained earnings. The Board authorized stock repurchase program does not include specific price targets, may be executed through open market purchases, tender offers, or privately negotiated transactions, including utilizing Rule 10b5-1 programs, does not have a set expiration date and may be suspended at any time. For additional information on dividends and stock repurchases, see “Capital Management—Capital Planning and Regulatory Stress Testing,” and “Part II—Item 2. Unregistered Sales of Equity Securities and Use of Proceeds” in this Report and “Part I—Item 1. Business—Supervision and Regulation—Prudential Regulation of Banking—Funding and Dividends from Subsidiaries” in our 2023 Form 10-K.

38 Capital One Financial Corporation (COF)

RISK MANAGEMENT

Risk Management Framework

Our Risk Management Framework (the “Framework”) sets consistent expectations for risk management across the Company. It also sets expectations for our “Three Lines of Defense” model, which defines the roles, responsibilities and accountabilities for taking and managing risk across the Company. Accountability for overseeing an effective Framework resides with our Board of Directors either directly or through its committees.

	First Line Identifies and Owns Risk	Second Line Advises & Challenges First Line	Third Line Provides Independent Assurance
Definition	Business areas that are accountable for risk and responsible for: i) generating revenue or reducing expenses; ii) supporting the business to provide products or services to customers; or iii) providing technology services for the first line.	Independent Risk Management (“IRM”) and Support Functions (e.g., Human Resources, Accounting, Legal) that provide support services to the Company.	Internal Audit and Credit Review.
Key Responsibilities	Identify, assess, measure, monitor, control, and report the risks associated with their business.	IRM: Independently oversees and assesses risk taking activities for the first line of defense. Support Functions: Centers of specialized expertise that provide support services to the enterprise.	Provides independent and objective assurance to the Board of Directors and senior management that the systems and governance processes are designed and working as intended.

39 Capital One Financial Corporation (COF)

Our Framework sets consistent expectations for risk management across the Company and consists of the following nine elements:

Governance and Accountability
Strategy and Risk Alignment
Risk Identification	Assessment, Measurement and Response	Monitoring and Testing	Aggregation, Reporting and Escalation
Capital and Liquidity Management (including Stress Testing)
Risk Data and Enabling Technology
Culture and Talent Management

We provide additional discussion of our risk management principles, roles and responsibilities, framework and risk appetite under “Part II—Item 7. MD&A—Risk Management” in our 2023 Form 10-K.

Risk Categories

We apply our Framework to protect the Company from the major categories of risk that we are exposed to through our business activities. We have seven major categories of risk as noted below. We provide a description of these categories and how we manage them under “Part II—Item 7. MD&A—Risk Management” in our 2023 Form 10-K.

•Compliance risk

•Credit risk

•Liquidity risk

•Market risk

•Operational risk

•Reputation risk

•Strategic risk

40 Capital One Financial Corporation (COF)

CREDIT RISK PROFILE

Our loan portfolio accounts for the substantial majority of our credit risk exposure. Our lending activities are governed under our credit policies and are subject to independent review and approval. Below we provide information about the composition of our loan portfolio, key concentrations and credit performance metrics.

We also engage in certain non-lending activities that may give rise to ongoing credit and counterparty settlement risk, including purchasing securities for our investment securities portfolio, entering into derivative transactions to manage our market risk exposure and to accommodate customers, extending short-term advances on syndication activity including bridge financing transactions we have underwritten, depositing certain operational cash balances in other financial institutions, executing certain foreign exchange transactions and extending customer overdrafts. We provide additional information related to our investment securities portfolio under “Consolidated Balance Sheets Analysis—Investment Securities” and “Part I—Item 1. Financial Statements—Note 3—Investment Securities” as well as credit risk related to derivative transactions in “Part I— Item 1. Financial Statements—Note 9—Derivative Instruments and Hedging Activities.”

Portfolio and Geographic Composition of Loans Held for Investment

Our loan portfolio consists of loans held for investment, including loans held in our consolidated trusts, and loans held for sale. The information presented in this section excludes loans held for sale, which totaled $96 million and $854 million as of September 30, 2024 and December 31, 2023, respectively.

Table 16 presents the composition of our portfolio of loans held for investment by portfolio segment as of September 30, 2024 and December 31, 2023.

Table 16: Portfolio Composition of Loans Held for Investment

	September 30, 2024				December 31, 2023
(Dollars in millions)	Loans		% of Total		Loans		% of Total
Credit Card:
Domestic credit card	$	149,400	46.6	%	$	147,666	46.1	%
International card businesses	7,251		2.3		6,881		2.1
Total credit card	156,651		48.9		154,547		48.2
Consumer Banking:
Auto	75,505		23.6		74,075		23.1
Retail banking	1,253		0.4		1,362		0.5
Total consumer banking	76,758		24.0		75,437		23.6
Commercial Banking:
Commercial and multifamily real estate	32,199		10.0		34,446		10.7
Commercial and industrial	54,635		17.1		56,042		17.5
Total commercial banking	86,834		27.1		90,488		28.2
Total loans held for investment	$	320,243	100.0	%	$	320,472	100.0	%

41 Capital One Financial Corporation (COF)

Geographic Composition

We market our credit card products throughout the United States, the United Kingdom and Canada. Our credit card loan portfolio is geographically diversified due to our product and marketing approach. The table below presents the geographic profile of our credit card loan portfolio as of September 30, 2024 and December 31, 2023.

Table 17: Credit Card Portfolio by Geographic Region

	September 30, 2024				December 31, 2023
(Dollars in millions)	Amount		% of Total		Amount		% of Total
Domestic credit card:
California	$	15,327	9.8	%	$	15,167	9.8%
Texas	12,879		8.2		12,318		8.0
Florida	11,481		7.3		11,148		7.2
New York	9,655		6.2		9,578		6.2
Pennsylvania	6,030		3.9		5,824		3.8
Illinois	5,710		3.6		5,581		3.6
Ohio	5,077		3.2		4,845		3.1
New Jersey	4,920		3.1		4,702		3.0
Georgia	4,789		3.1		4,606		3.0
North Carolina	4,283		2.7		4,088		2.6
Other	69,249		44.3		69,809		45.2
Total domestic credit card	149,400		95.4		147,666		95.5
International card businesses:
United Kingdom	4,109		2.6		3,639		2.4
Canada	3,142		2.0		3,242		2.1
Total international card businesses	7,251		4.6		6,881		4.5
Total credit card	$	156,651	100.0	%	$	154,547	100.0%

42 Capital One Financial Corporation (COF)

Our auto loan portfolio is geographically diversified in the United States due to our product and marketing approach. Retail banking includes small business loans and other consumer lending products originated through our branch and café network. The table below presents the geographic profile of our auto loan and retail banking portfolios as of September 30, 2024 and December 31, 2023.

Table 18: Consumer Banking Portfolio by Geographic Region

	September 30, 2024				December 31, 2023
(Dollars in millions)	Amount		% of Total		Amount		% of Total
Auto:
Texas	$	9,189	12.0	%	$	9,020	11.9	%
California	8,747		11.4		8,747		11.6
Florida	6,742		8.8		6,488		8.6
Pennsylvania	3,342		4.4		3,215		4.3
Ohio	3,316		4.3		3,130		4.1
Illinois	3,066		4.0		2,988		4.0
Georgia	2,917		3.8		2,971		3.9
New Jersey	2,657		3.5		2,626		3.5
Other	35,529		46.2		34,890		46.3
Total auto	75,505		98.4		74,075		98.2
Retail banking:
New York	380		0.5		417		0.6
Texas	281		0.4		297		0.4
Louisiana	202		0.2		234		0.3
New Jersey	84		0.1		94		0.1
Maryland	73		0.1		81		0.1
Virginia	53		0.1		54		0.1
Other	180		0.2		185		0.2
Total retail banking	1,253		1.6		1,362		1.8
Total consumer banking	$	76,758	100.0	%	$	75,437	100.0	%

    

43 Capital One Financial Corporation (COF)

We originate commercial and multifamily real estate loans in most regions of the United States. The table below presents the geographic profile of our commercial real estate portfolio as of September 30, 2024 and December 31, 2023.

Table 19: Commercial Real Estate Portfolio by Region

	September 30, 2024				December 31, 2023
(Dollars in millions)	Amount		% of Total		Amount		% of Total
Geographic concentration:(1)
Northeast	$	12,597	39.1	%	$	13,931	40.5	%
South	7,732		24.0		7,073		20.5
Pacific West	4,658		14.5		5,342		15.5
Mid-Atlantic	2,811		8.7		4,138		12.0
Mountain	2,248		7.0		1,910		5.5
Midwest	2,153		6.7		2,052		6.0
Total	$	32,199	100.0	%	$	34,446	100.0	%

__________

(1)Geographic concentration is generally determined by the location of the borrower’s business or the location of the collateral associated with the loan. Northeast consists of CT, MA, ME, NH, NJ, NY, PA, RI and VT. South consists of AL, AR, FL, GA, KY, LA, MS, NC, OK, SC, TN and TX. Pacific West consists of: AK, CA, HI, OR and WA. Mid-Atlantic consists of DC, DE, MD, VA and WV. Midwest consists of: IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD and WI. Mountain consists of: AZ, CO, ID, MT, NM, NV, UT and WY.

44 Capital One Financial Corporation (COF)

Commercial Loans by Industry

Table 20 summarizes our commercial loans held for investment portfolio by industry classification as of September 30, 2024 and December 31, 2023. Industry classifications below are based on our interpretation of the Federal Loan Classification codes as they pertain to each individual loan.

Table 20: Commercial Loans by Industry

(Percentage of portfolio)	September 30, 2024		December 31, 2023
Industry Classification:
Finance	32%		31	%
Real Estate & Construction(1)	28		30
Government & Education	9		8
Health Care & Pharmaceuticals	6		6
Commercial Services	4		4
Technology, Telecommunications & Media	3		2
Oil, Gas & Pipelines	3		3
Other	15		16
Total	100	%	100	%

__________

(1)The funded balance for commercial office real estate held for investment totaled $2.0 billion, or 2.3% and $2.3 billion, or 2.5%, as of September 30, 2024 and December 31, 2023, respectively. Commercial office real estate exposure does not include loans in our healthcare real estate business secured by medical office properties and loans to office real estate investment trusts or real estate investment funds.

45 Capital One Financial Corporation (COF)

Credit Risk Measurement

We closely monitor economic conditions and loan performance trends to assess and manage our exposure to credit risk. Trends in delinquency rates are the key credit quality indicator for our credit card and retail banking loan portfolios as changes in delinquency rates can provide an early warning of changes in potential future credit losses. The key indicator we monitor when assessing the credit quality and risk of our auto loan portfolio is borrower credit scores as they provide insight into borrower risk profiles, which give indications of potential future credit losses. The key credit quality indicator for our commercial loan portfolios is our internal risk ratings as we generally classify loans that have been delinquent for an extended period of time and other loans with significant risk of loss as nonperforming. In addition to these credit quality indicators, we also manage and monitor other credit quality metrics such as level of nonperforming loans and net charge-off rates.

We underwrite most consumer loans using proprietary models, which typically include credit bureau data, such as borrower credit scores, application information and, where applicable, collateral and deal structure data. We continuously adjust our management of credit lines and collection strategies based on customer behavior and risk profile changes. We also use borrower credit scores for subprime classification, for competitive benchmarking and, in some cases, to drive product segmentation decisions. 

Table 21 provides details on the credit scores of our domestic credit card and auto loan portfolios as of September 30, 2024 and December 31, 2023.

Table 21: Credit Score Distribution

(Percentage of portfolio)	September 30, 2024		December 31, 2023
Domestic credit card—Refreshed FICO scores:(1)
Greater than 660	69	%	68	%
660 or below	31		32
Total	100	%	100	%
Auto—At origination FICO scores:(2)
Greater than 660	53	%	53	%
621 - 660	20		20
620 or below	27		27
Total	100	%	100	%

__________

(1)Percentages represent period-end loans held for investment in each credit score category. Domestic Card credit scores generally represent Fair Isaac Corporation (“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.

(2)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.

In our commercial loan portfolio, we assign internal risk ratings to loans based on relevant information about the ability of the borrowers to repay their debt. In determining the risk rating of a particular loan, some of the factors considered are the borrower’s current financial condition, historical and projected future credit performance, prospects for support from financially responsible guarantors, the estimated realizable value of any collateral and current economic trends.

We present information in the section below on the credit performance of our loan portfolio, including the key metrics we use in tracking changes in the credit quality of our loan portfolio. See “Part I—Item 1. Financial Statements—Note 4—Loans” for additional credit quality information and see “Part II—Item 8. Financial Statements—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for information on our accounting policies for delinquent and nonperforming loans, charge-offs and loan modifications and restructurings for each of our loan categories.

46 Capital One Financial Corporation (COF)

Delinquency Rates

We consider the entire balance of an account to be delinquent if the minimum required payment is not received by the customer’s due date, measured at each balance sheet date. Our 30+ day delinquency metrics include all loans held for investment that are 30 or more days past due, whereas our 30+ day performing delinquency metrics include all loans held for investment that are 30 or more days past due but are currently classified as performing and accruing interest. The 30+ day delinquency and 30+ day performing delinquency metrics are the same for domestic credit card loans, as we continue to classify these loans as performing until the account is charged off, typically when the account is 180 days past due. See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for information on our policies for classifying loans as nonperforming for each of our loan categories. We provide additional information on our credit quality metrics in “Business Segment Financial Performance.”

Table 22 presents our 30+ day performing delinquency rates and 30+ day delinquency rates of our portfolio of loans held for investment, by portfolio segment, as of September 30, 2024 and December 31, 2023.

Table 22: 30+ Day Delinquencies

	September 30, 2024								December 31, 2023
	30+ Day Performing Delinquencies				30+ Day Delinquencies				30+ Day Performing Delinquencies				30+ Day Delinquencies
(Dollars in millions)	Amount		Rate(1)		Amount		Rate(1)		Amount		Rate(1)		Amount		Rate(1)
Credit Card:
Domestic credit card	$	6,767	4.53	%	$	6,767	4.53	%	$	6,806	4.61	%	$	6,806	4.61	%
International card businesses	329		4.53		337		4.65		321		4.67		329		4.77
Total credit card	7,096		4.53		7,104		4.54		7,127		4.61		7,135		4.62
Consumer Banking:
Auto	4,237		5.61		4,823		6.39		4,696		6.34		5,307		7.16
Retail banking	11		0.95		24		1.92		17		1.19		33		2.40
Total consumer banking	4,248		5.53		4,847		6.31		4,713		6.25		5,340		7.08
Commercial Banking:
Commercial and multifamily real estate	1		—		183		0.57		—		—		121		0.35
Commercial and industrial	131		0.24		315		0.58		55		0.10		181		0.32
Total commercial banking	132		0.15		498		0.57		55		0.06		302		0.33
Total	$	11,476	3.58		$	12,449	3.89		$	11,895	3.71		$	12,777	3.99

__________

(1)Delinquency rates are calculated by dividing delinquency amounts by period-end loans held for investment for each specified loan category.

47 Capital One Financial Corporation (COF)

Table 23 presents our 30+ day delinquent loans held for investment, by aging and geography, as of September 30, 2024 and December 31, 2023.

Table 23: Aging and Geography of 30+ Day Delinquent Loans

	September 30, 2024				December 31, 2023
(Dollars in millions)	Amount		Rate(1)		Amount		Rate(1)
Delinquency status:
30 – 59 days	$	5,234	1.64	%	$	5,367	1.68	%
60 – 89 days	3,072		0.96		3,119		0.97
> 90 days	4,143		1.29		4,291		1.34
Total	$	12,449	3.89	%	$	12,777	3.99	%
Geographic region:
Domestic	$	12,112	3.78	%	$	12,448	3.89	%
International	337		0.11		329		0.10
Total	$	12,449	3.89	%	$	12,777	3.99	%

__________

(1)Delinquency rates are calculated by dividing delinquency amounts by total period-end loans held for investment.

48 Capital One Financial Corporation (COF)

Table 24 summarizes loans that were 90+ days delinquent, in regards to interest or principal payments, and still accruing interest as of September 30, 2024 and December 31, 2023. These loans consist primarily of credit card accounts between 90 days and 179 days past due. As permitted by regulatory guidance issued by the FFIEC, we continue to accrue interest and fees on domestic credit card loans through the date of charge off, which is typically in the period the account becomes 180 days past due.

Table 24: 90+ Day Delinquent Loans Accruing Interest

	September 30, 2024				December 31, 2023
(Dollars in millions)	Amount		Rate(1)		Amount		Rate(1)
Loan category:
Credit card	$	3,456	2.21	%	$	3,499	2.26	%
Commercial banking	—		—		55		0.06
Total	$	3,456	1.08		$	3,554	1.11
Geographic region:
Domestic	$	3,316	1.06	%	$	3,422	1.09	%
International	140		1.93		132		1.91
Total	$	3,456	1.08		$	3,554	1.11

__________

(1)Delinquency rates are calculated by dividing delinquency amounts by period-end loans held for investment for each specified loan category.

49 Capital One Financial Corporation (COF)

Nonperforming Loans and Nonperforming Assets

Nonperforming loans include loans that have been placed on nonaccrual status. Nonperforming assets consist of nonperforming loans, repossessed assets and other foreclosed assets. See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for information on our policies for classifying loans as nonperforming for each of our loan categories.

Table 25 presents our nonperforming loans, by portfolio segment, and other nonperforming assets as of September 30, 2024 and December 31, 2023. We do not classify loans held for sale as nonperforming. We provide additional information on our credit quality metrics in “Business Segment Financial Performance.”

Table 25: Nonperforming Loans and Other Nonperforming Assets(1)

	September 30, 2024				December 31, 2023
(Dollars in millions)	Amount		Rate		Amount		Rate
Nonperforming loans held for investment:(2)
Credit Card:
International card businesses	$	11	0.15	%	$	9	0.13	%
Total credit card	11		0.01		9		0.01
Consumer Banking:
Auto	685		0.91		712		0.96
Retail banking	27		2.19		46		3.36
Total consumer banking	712		0.93		758		1.00
Commercial Banking:
Commercial and multifamily real estate	630		1.96		425		1.23
Commercial and industrial	718		1.32		336		0.60
Total commercial banking	1,348		1.55		761		0.84
Total nonperforming loans held for investment(3)	2,071		0.65		1,528		0.48
Other nonperforming assets(4)	67		0.02		62		0.02
Total nonperforming assets	$	2,138	0.67		$	1,590	0.50

__________

(1)We recognized interest income for loans classified as nonperforming of $70 million and $47 million in the first nine months of 2024 and 2023, respectively.

(2)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.

(3)Excluding the impact of domestic credit card loans, nonperforming loans as a percentage of total loans held for investment was 1.21% and 0.88% as of September 30, 2024 and December 31, 2023, respectively.

(4)The denominators used in calculating nonperforming asset rates consist of total loans held for investment and other nonperforming assets.

50 Capital One Financial Corporation (COF)

Net Charge-Offs

Net charge-offs consist of the amortized cost basis, excluding accrued interest, of loans held for investment that we determine to be uncollectible, net of recovered amounts. We charge off loans as a reduction to the allowance for credit losses when we determine the loan is uncollectible and record subsequent recoveries of previously charged off amounts as increases to the allowance for credit losses. Uncollectible finance charges and fees are reversed through revenue and certain fraud losses are recorded in other non-interest expense. Generally, costs to recover charged off loans are recorded as collection expenses as incurred and are included in our consolidated statements of income as a component of other non-interest expense. Our charge-off policy for loans varies based on the loan type. See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for information on our charge-off policy for each of our loan categories.

Table 26 presents our net charge-off amounts and rates, by portfolio segment, in the third quarter and first nine months of 2024 and 2023.

Table 26: Net Charge-Offs

	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
(Dollars in millions)	Amount		Rate(1)		Amount		Rate(1)		Amount		Rate(1)		Amount		Rate(1)
Credit Card:
Domestic credit card(2)	$	2,063	5.61	%	$	1,512	4.40	%	$	6,356	5.86	%	$	4,262	4.28	%
International card businesses	91		5.23		80		4.87		263		5.14		227		4.80
Total credit card	2,154		5.60		1,592		4.42		6,619		5.83		4,489		4.30
Consumer Banking:
Auto	384		2.05		335		1.77		1,086		1.95		898		1.57
Retail banking	17		5.43		14		3.80		48		4.94		37		3.33
Total consumer banking	401		2.11		349		1.81		1,134		2.00		935		1.60
Commercial Banking:
Commercial and multifamily real estate	20		0.26		24		0.27		47		0.19		404		1.46
Commercial and industrial	29		0.20		34		0.24		64		0.15		53		0.13
Total commercial banking	49		0.22		58		0.25		111		0.17		457		0.66
Total net charge-offs	$	2,604	3.27		$	1,999	2.56		$	7,864	3.32		$	5,881	2.53
Average loans held for investment	$	318,255			$	312,759			$	315,927			$	310,075

__________

(1)Net charge-off rates are calculated by dividing annualized net charge-offs by average loans held for investment for the period for each loan category.

(2)The Walmart Program Termination increased the Domestic Card net charge-off rate by 38 bps and 19 bps in the third quarter and nine months ended September 30, 2024, respectively.

51 Capital One Financial Corporation (COF)

Financial Difficulty Modifications to Borrowers

A financial difficulty modification (“FDM”) occurs when a modification in the form of principal forgiveness, interest rate reduction, an other-than-insignificant payment delay, a term extension or a combination of these modifications is granted to a borrower experiencing financial difficulty.

As part of our loss mitigation efforts, we may provide short-term (one to twelve months) or long-term (greater than twelve months) modifications to a borrower experiencing financial difficulty to improve long-term collectability of the loan and to avoid the need for repossession or foreclosure of collateral.

We consider the impact of all loan modifications, including FDMs, when estimating the credit quality of our loan portfolio and establishing allowance levels. For our Commercial Banking customers, loan modifications are also considered in the assignment of an internal risk rating.

In our Credit Card business, the majority of our FDMs receive an interest rate reduction and are placed on a fixed payment plan not exceeding 60 months. If the customer does not comply with the modified payment terms, then the credit card loan agreement may revert to its original payment terms, generally resulting in any loan outstanding being reflected in the appropriate delinquency category and charged off in accordance with our standard charge-off policy.

In our Consumer Banking business, the majority of our FDMs receive an extension, an interest rate reduction, principal reduction, or a combination of these modifications.

In our Commercial Banking business, the majority of our FDMs receive an extension. A portion of FDMs receive an interest rate reduction, principal reduction, or a combination of modifications.

For more information on FDMs, see “Item 1. Financial Statements—Note 4—Loans.”

Allowance for Credit Losses and Reserve for Unfunded Lending Commitments

Our allowance for credit losses represents management’s current estimate of expected credit losses over the contractual terms of our loans held for investment as of each balance sheet date. Expected recoveries of amounts previously charged off or expected to be charged off are recognized within the allowance. We also estimate expected credit losses related to unfunded lending commitments that are not unconditionally cancellable. The provision for losses on unfunded lending commitments is included in the provision for credit losses in our consolidated statements of income and the related reserve for unfunded lending commitments is included in other liabilities on our consolidated balance sheets. We provide additional information on the methodologies and key assumptions used in determining our allowance for credit losses in “Part II—Item 8.Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K.

52 Capital One Financial Corporation (COF)

Table 27 presents changes in our allowance for credit losses and reserve for unfunded lending commitments for the third quarter and first nine months of 2024 and 2023, and details by portfolio segment for the provision for credit losses, charge-offs and recoveries.

Table 27: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

	Three Months Ended September 30, 2024
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of June 30, 2024	$	12,560	$	480	$	13,040	$	2,037	$	28	$	2,065	$	1,544	$	16,649
Charge-offs	(2,501)		(131)		(2,632)		(684)		(23)		(707)		(88)		(3,427)
Recoveries(1)	438		40		478		300		6		306		39		823
Net charge-offs	(2,063)		(91)		(2,154)		(384)		(17)		(401)		(49)		(2,604)
Provision for credit losses	1,997		87		2,084		335		16		351		35		2,470
Allowance release for credit losses	(66)		(4)		(70)		(49)		(1)		(50)		(14)		(134)
Other changes(2)	—		19		19		—		—		—		—		19
Balance as of September 30, 2024	12,494		495		12,989		1,988		27		2,015		1,530		16,534
Reserve for unfunded lending commitments:
Balance as of June 30, 2024	—		—		—		—		—		—		129		129
Provision for losses on unfunded lending commitments	—		—		—		—		—		—		13		13
Balance as of September 30, 2024	—		—		—		—		—		—		142		142
Combined allowance and reserve as of September 30, 2024	$	12,494	$	495	$	12,989	$	1,988	$	27	$	2,015	$	1,672	$	16,676

	Nine Months Ended September 30, 2024
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2023	$	11,261	$	448	$	11,709	$	2,002	$	40	$	2,042	$	1,545	$	15,296
Charge-offs	(7,509)		(383)		(7,892)		(1,941)		(62)		(2,003)		(166)		(10,061)
Recoveries(1)	1,153		120		1,273		855		14		869		55		2,197
Net charge-offs	(6,356)		(263)		(6,619)		(1,086)		(48)		(1,134)		(111)		(7,864)
Provision for credit losses	7,589		299		7,888		1,072		35		1,107		96		9,091
Allowance build (release) for credit losses(3)	1,233		36		1,269		(14)		(13)		(27)		(15)		1,227
Other changes(2)	—		11		11		—		—		—		—		11
Balance as of September 30, 2024	12,494		495		12,989		1,988		27		2,015		1,530		16,534
Reserve for unfunded lending commitments:
Balance as of December 31, 2023	—		—		—		—		—		—		158		158
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(16)		(16)
Balance as of September 30, 2024	—		—		—		—		—		—		142		142
Combined allowance and reserve as of September 30, 2024	$	12,494	$	495	$	12,989	$	1,988	$	27	$	2,015	$	1,672	$	16,676

53 Capital One Financial Corporation (COF)

	Three Months Ended September 30, 2023
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of June 30, 2023	$	10,576	$	400	$	10,976	$	2,150	$	35	$	2,185	$	1,485	$	14,646
Charge-offs	(1,811)		(114)		(1,925)		(579)		(17)		(596)		(60)		(2,581)
Recoveries(1)	299		34		333		244		3		247		2		582
Net charge-offs	(1,512)		(80)		(1,592)		(335)		(14)		(349)		(58)		(1,999)
Provision for credit losses	1,861		92		1,953		198		15		213		155		2,321
Allowance build (release) for credit losses	349		12		361		(137)		1		(136)		97		322
Other changes(2)	—		(13)		(13)		—		—		—		—		(13)
Balance as of September 30, 2023	10,925		399		11,324		2,013		36		2,049		1,582		14,955
Reserve for unfunded lending commitments:
Balance as of June 30, 2023	—		—		—		—		—		—		197		197
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(39)		(39)
Balance as of September 30, 2023	—		—		—		—		—		—		158		158
Combined allowance and reserve as of September 30, 2023	$	10,925	$	399	$	11,324	$	2,013	$	36	$	2,049	$	1,740	$	15,113

	Nine Months Ended September 30, 2023
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2022	$	9,165	$	380	$	9,545	$	2,187	$	50	$	2,237	$	1,458	$	13,240
Cumulative effects of accounting standards adoption(4)	(40)		(23)		(63)		—		—		—		—		(63)
Balance as of January 1, 2023	9,125		357		9,482		2,187		50		2,237		1,458		13,177
Charge-offs	(5,156)		(325)		(5,481)		(1,602)		(51)		(1,653)		(462)		(7,596)
Recoveries(1)	894		98		992		704		14		718		5		1,715
Net charge-offs	(4,262)		(227)		(4,489)		(898)		(37)		(935)		(457)		(5,881)
Provision for credit losses	6,030		268		6,298		724		23		747		581		7,626
Allowance build (release) for credit losses	1,768		41		1,809		(174)		(14)		(188)		124		1,745
Other changes(2)	32		1		33		—		—		—		—		33
Balance as of September 30, 2023	10,925		399		11,324		2,013		36		2,049		1,582		14,955
Reserve for unfunded lending commitments:
Balance as of December 31, 2022	—		—		—		—		—		—		218		218
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(60)		(60)
Balance as of September 30, 2023	—		—		—		—		—		—		158		158
Combined allowance and reserve as of September 30, 2023	$	10,925	$	399	$	11,324	$	2,013	$	36	$	2,049	$	1,740	$	15,113

________

(1)The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications, repossession of collateral, the periodic sale of charged off loans as well as additional strategies, such as litigation.

(2)Primarily represents foreign currency translation adjustments in the three and nine months ended September 30, 2024 as well as the three months ended September 30, 2023. Primarily represents the initial allowance for purchased credit-deteriorated (“PCD”) loans in the nine months ended September 30, 2023. The initial allowance of PCD loans was $0 million and $32 million for the nine months ended September 30, 2024 and 2023, respectively.

(3)The Walmart Program Termination resulted in an allowance for credit losses build in Domestic Card of $826 million in the second quarter of 2024.

(4)Impact from the adoption of ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures as of January 1, 2023.

54 Capital One Financial Corporation (COF)

LIQUIDITY RISK PROFILE

We manage our funding and liquidity risk in an integrated manner in support of the current and future cash flow needs of our business. We maintained liquidity reserves of $131.6 billion and $120.7 billion as of September 30, 2024 and December 31, 2023, respectively, as shown in Table 28 below. Included in liquidity reserves are cash and cash equivalents, investment securities and FHLB borrowing capacity secured by loans.

As of September 30, 2024, we had available issuance capacity of $41.0 billion under shelf registrations associated with our credit card and auto loan securitization programs. We also maintain a shelf registration that enables us to issue an indeterminate amount of senior or subordinated debt securities, preferred stock, depositary shares, common stock, purchase contracts, warrants and units. Our ability to issue under each shelf registration is subject to market conditions.

Finally, as of September 30, 2024, we had access to available contingent liquidity sources totaling $105.8 billion through the prepositioning of collateral, including a portion of the investment securities included in the liquidity reserve amount, at the Federal Reserve Discount Window, the Standing Repo Facility, FHLB and the Fixed Income Clearing Corporation—Government Securities Division (“FICC—GSD”).

As of September 30, 2024 and December 31, 2023, our funding sources totaled $403.0 billion and $398.3 billion, respectively, primarily composed of consumer deposits, as shown in “Consolidated Balance Sheets Analysis—Funding Sources Composition.”

Our liquidity reserves, borrowing capacity, contingent liquidity sources and total funding sources are all discussed in more detail in the following sections.

Table 28 below presents the composition of our liquidity reserves as of September 30, 2024 and December 31, 2023.

Table 28: Liquidity Reserves

(Dollars in millions)	September 30, 2024		December 31, 2023
Cash and cash equivalents	$	49,298	$	43,297
Securities available for sale(1)	83,500		79,117
FHLB borrowing capacity secured by loans	4,818		5,205
Outstanding FHLB advances and letters of credit secured by loans and investment securities	(48)		(50)
Other encumbrances of investment securities	(5,946)		(6,917)
Total liquidity reserves	$	131,622	$	120,652

________

(1)    Includes securities that have been pledged or otherwise encumbered within the above Liquidity Reserves line items “Outstanding FHLB advances and letters of credit secured by loans and investment securities” and “Other encumbrances of investment securities.”

Our liquidity reserves increased by $11.0 billion to $131.6 billion as of September 30, 2024 from December 31, 2023, primarily due to increases in cash and cash equivalents. In addition to these liquidity reserves, we maintain access to a diversified mix of funding sources as discussed in the “Borrowing Capacity” and “Funding” sections below. See “Part II—Item 7. MD&A—Risk Management” in our 2023 Form 10-K for additional information on our management of liquidity risk.

Liquidity Coverage Ratio

We are subject to the final rules published by the Basel Committee and as implemented by the Federal Reserve and the OCC for the Basel III Liquidity Coverage Ratio (“LCR”) in the United States (the “LCR Rule”). The LCR Rule requires each of the Company and the Bank to calculate its respective LCR daily. It also requires the Company to publicly disclose, on a quarterly basis, its LCR, certain related quantitative liquidity metrics, and a qualitative discussion of its LCR. Our average LCR during the third quarter of 2024 was 163%, which exceeded the LCR Rule requirement of 100%. The calculation and the underlying components are based on our interpretations, expectations and assumptions of relevant regulations, as well as interpretations provided by our regulators, and are subject to change based on changes to future regulations and interpretations. See “Part I—Item 1. Business—Supervision and Regulation” in our 2023 Form 10-K for additional information.

55 Capital One Financial Corporation (COF)

Net Stable Funding Ratio

We are subject to the final rules published by the Basel Committee and as implemented by the Federal Reserve and the OCC for the Basel III Net Stable Funding Ratio (“NSFR”) in the United States (the “NSFR Rule”). The NSFR Rule requires each of the Company and the Bank to maintain an NSFR of 100% on an ongoing basis. It also requires the Company to publicly disclose, on a semi-annual basis each second and fourth quarter, its NSFR, certain related quantitative liquidity metrics and qualitative discussion of its NSFR. Our average NSFR for the third quarter of 2024 exceeded the NSFR Rule requirement of 100%. The calculation and the underlying components are based on our interpretations, expectations and assumptions of the relevant regulations, as well as interpretations provided by our regulators, and are subject to change based on changes to future regulations and interpretations. See “Part I—Item 1. Business—Supervision and Regulation” in our 2023 Form 10-K for additional information.

Borrowing Capacity

We maintain a shelf registration with the U.S. Securities and Exchange Commission (“SEC”) so that we may periodically offer and sell an indeterminate aggregate amount of senior or subordinated debt securities, preferred stock, depositary shares, common stock, purchase contracts, warrants and units. There is no limit under this shelf registration to the amount or number of such securities that we may offer and sell, subject to market conditions. In addition, we also maintain a shelf registration associated with our credit card securitization trust that allows us to periodically offer and sell up to $30.0 billion of securitized debt obligations and a shelf registration associated with our auto loan securitization trusts that allows us to periodically offer and sell up to $25.0 billion of securitized debt obligations. The registered amounts under these shelf registration statements are subject to continuing review and change in the future, including as part of the routine renewal process. As of September 30, 2024, we had $21.6 billion and $19.4 billion of available issuance capacity in our credit card and auto loan securitization programs, respectively.

In addition to our issuance capacity under the shelf registration statements, we also have collateral pledged to support our access to FHLB advances, the Federal Reserve Discount Window, the Standing Repo Facility and FICC—GSD general collateral financing repurchase agreement service. For each of these programs, the ability to borrow utilizing these sources is dependent on meeting the respective membership requirements. Our borrowing capacity in each program is a function of the collateral the Bank has posted with each counterparty, including any respective haircuts applied to that collateral.

As of September 30, 2024, we pledged loans and securities to the FHLB to secure a maximum borrowing capacity of $37.0 billion, of which $48 million was used. Our FHLB membership is supported by our investment in FHLB stock of $18 million as of both September 30, 2024 and December 31, 2023.

As a member of FICC—GSD, we had $21.9 billion of readily available borrowing capacity secured by securities from our investment portfolio as of September 30, 2024. Our FICC—GSD membership is supported by our investment in Depository Trust and Clearing Corporation (“DTCC”) common stock of $412 thousand and $375 thousand as of September 30, 2024 and December 31, 2023, respectively.

As of September 30, 2024, we pledged loans to secure a borrowing capacity of $46.9 billion under the Federal Reserve Discount Window. Our membership with the Federal Reserve is supported by our investment in Federal Reserve stock, which totaled $1.3 billion as of both September 30, 2024 and December 31, 2023.

56 Capital One Financial Corporation (COF)

Deposits

Table 29 provides a comparison of average balances, interest expense and average deposits interest rates for the third quarter and first nine months of 2024 and 2023.

Table 29: Deposits Composition and Average Deposits Interest Rates

	Three Months Ended September 30,
	2024						2023
(Dollars in millions)	Average Balance		Interest Expense		Average Deposits Interest Rate		Average Balance		Interest Expense		Average Deposits Interest Rate
Interest-bearing checking accounts(1)	$	33,936	$	135	1.59	%	$	40,833	$	215	2.10	%
Saving deposits(2)	211,608		1,825		3.45		196,030		1,479		3.02
Time deposits	78,965		985		4.99		79,169		917		4.64
Total interest-bearing deposits	$	324,509	$	2,945	3.63		$	316,032	$	2,611	3.30

	Nine Months Ended September 30,
	2024						2023
(Dollars in millions)	Average Balance		Interest Expense		Average Deposits Interest Rate		Average Balance		Interest Expense		Average Deposits Interest Rate
Interest-bearing checking accounts(1)	$	34,829	$	421	1.61	%	$	42,855	$	620	1.93	%
Saving deposits(2)	209,030		5,299		3.38		197,819		3,762		2.54
Time deposits	77,997		2,911		4.98		72,028		2,362		4.37
Total interest-bearing deposits	$	321,856	$	8,631	3.58		$	312,702	$	6,744	2.88

__________

(1)Includes negotiable order of withdrawal accounts.

(2)Includes money market deposit accounts.

The FDIC limits the acceptance of brokered deposits to well-capitalized insured depository institutions and, with a waiver from the FDIC, to adequately-capitalized institutions. The Bank was well-capitalized, as defined under the federal banking regulatory guidelines, as of both September 30, 2024 and December 31, 2023. See “Part I—Item 1. Business—Supervision and Regulation” in our 2023 Form 10-K for additional information. We provide additional information on the composition of deposits in “Consolidated Balance Sheets Analysis—Funding Sources Composition” and in “Part I—Item 1. Financial Statements—Note 8—Deposits and Borrowings.”

Funding

Our primary source of funding comes from insured retail deposits, as they are a relatively stable and lower cost source of funding. In addition to deposits, we raise funding through the issuance of senior and subordinated notes and securitized debt obligations, federal funds purchased, securities loaned or sold under agreements to repurchase and FHLB advances secured by certain portions of our loan and securities portfolios. A key objective in our use of these markets is to maintain access to a diversified mix of wholesale funding sources. See “Consolidated Balance Sheets Analysis—Funding Sources Composition” for additional information on our primary sources of funding.

In the normal course of business, we enter into various contractual obligations that may require future cash payments that affect our short-term and long-term liquidity and capital resource needs. Our future cash outflows primarily relate to deposits, borrowings and operating leases. The actual timing and amounts of future cash payments may vary over time due to a number of factors, such as early debt redemptions and changes in deposit balances.

57 Capital One Financial Corporation (COF)

Short-Term Borrowings and Long-Term Debt

We access the capital markets to meet our funding needs through the issuance of senior and subordinated notes, securitized debt obligations and federal funds purchased and securities loaned or sold under agreements to repurchase. In addition, we have access to short-term and long-term FHLB advances secured by certain investment securities, multifamily real estate loans and commercial real estate loans.

Our short-term borrowings, which include those borrowings with an original contractual maturity of one year or less, typically consist of federal funds purchased, securities loaned or sold under agreements to repurchase or short-term FHLB advances, and do not include the current portion of long-term debt. Our short-term borrowings decreased by $18 million to $520 million as of September 30, 2024 from December 31, 2023 driven by a decrease in repurchase agreements.

Our long-term funding, which primarily consists of securitized debt obligations and senior and subordinated notes, decreased by $502 million to $48.8 billion as of September 30, 2024 from December 31, 2023 primarily driven by net maturities and paydowns of securitized debt obligations, partially offset by net issuances of unsecured senior debt. We provide more information on our securitization activity in “Part I—Item 1. Financial Statements—Note 6—Variable Interest Entities and Securitizations” and on our borrowings in “Part I—Item 1. Financial Statements—Note 8—Deposits and Borrowings.”

The following table summarizes issuances of securitized debt obligations, and senior and subordinated notes, and their respective maturities or redemptions for the third quarter and first nine months of 2024 and 2023.

Table 30: Long-Term Debt Funding Activities

	Issuances				Maturities/Redemptions
	Three Months Ended September 30,				Three Months Ended September 30,
(Dollars in millions)	2024		2023		2024		2023
Securitized debt obligations	$	1,000	$	—	$	2,622	$	452
Senior and subordinated notes	2,000		—		—		—
Total	$	3,000	$	—	$	2,622	$	452

	Issuances				Maturities/Redemptions
	Nine Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2024		2023		2024		2023
Securitized debt obligations	$	1,000	$	2,450	$	3,434	$	2,003
Senior and subordinated notes	4,000		5,750		2,911		4,886
Total	$	5,000	$	8,200	$	6,345	$	6,889

58 Capital One Financial Corporation (COF)

Credit Ratings

Our credit ratings impact our ability to access capital markets and our borrowing costs. For more information, see “Part I—Item 1A. Risk Factors” under the heading in our 2023 Form 10-K “A downgrade in our credit ratings could significantly impact our liquidity, funding costs and access to the capital markets.”

Table 31 provides a summary of the credit ratings for the senior unsecured long-term debt of Capital One Financial Corporation and CONA as of September 30, 2024 and December 31, 2023.

Table 31: Senior Unsecured Long-Term Debt Credit Ratings

	September 30, 2024		December 31, 2023
	Capital One Financial Corporation	CONA	Capital One Financial Corporation	CONA
Moody’s	Baa1	A3	Baa1	A3
S&P	BBB	BBB+	BBB	BBB+
Fitch	A-	A	A-	A

As of October 25, 2024 Standard & Poor’s (“S&P”) and Fitch Ratings (“Fitch”) have our credit ratings on a stable outlook. Following the Company’s February 19, 2024 announcement to acquire Discover, Moody’s Investors Service (“Moody’s”) placed our credit ratings on review for a downgrade. Moody’s said its review for downgrade may continue until the transaction has been completed.

Other Commitments

In the normal course of business, we enter into other contractual obligations that may require future cash payments that affect our short-term and long-term liquidity and capital resource needs. Our other contractual obligations include lending commitments, leases, purchase obligations and other contractual arrangements.

As of September 30, 2024 and December 31, 2023, our total unfunded lending commitments were $458.9 billion and $441.3 billion, respectively, primarily consisting of credit card lines and loan commitments to customers of both our Commercial Banking and Consumer Banking businesses, as well as standby and commercial letters of credit. We generally manage the potential risk of unfunded lending commitments by limiting the total amount of arrangements, monitoring the size and maturity structure of these portfolios and applying the same credit standards for all of our credit activities. For additional information, refer to “Part I—Item 1. Financial Statements—Note 14—Commitments, Contingencies, Guarantees and Others” in this Report.

Our primary involvement with leases is in the capacity as a lessee where we lease premises to support our business. The majority of our leases are operating leases of office space, retail bank branches and cafés. Our operating leases expire at various dates through 2071, although some have extension or termination options. As of both September 30, 2024 and December 31, 2023, we had $1.5 billion, in aggregate operating lease obligations. We provide more information on our lease activity in “Part II—Item 8. Financial Statements and Supplementary Data—Note 7—Premises, Equipment and Leases” in our 2023 Form 10-K.

We have purchase obligations that represent substantial agreements to purchase goods or receive services such as data management, media and other software and third-party services that are enforceable and legally binding and specify significant terms. As of September 30, 2024 and December 31, 2023, we had $3.8 billion and $789 million, respectively, in aggregate purchase obligations. This increase is mainly due to recently renewed commitments for certain long term purchase obligations for goods and services.

We also enter into various contractual arrangements that may require future cash payments, including short-term obligations such as trade payables, commitments to fund certain equity investments, obligations for pension and post-retirement benefit plans, and representation and warranty reserves. These arrangements are discussed in more detail in “Part I—Item 1. Financial Statements—Note 6—Variable Interest Entities and Securitizations,” and “Part I—Item 1. Financial Statements—Note 14—Commitments, Contingencies, Guarantees and Others” in this Report and “Part II—Item 8. Financial Statements and Supplementary Data—Note 14—Employee Benefit Plans” in our 2023 Form 10-K.

59 Capital One Financial Corporation (COF)

MARKET RISK PROFILE

Our primary market risk exposures include interest rate risk, foreign exchange risk and commodity pricing risk. We are exposed to market risk primarily from the following operations and activities:

•Traditional banking activities of deposit gathering and lending;

•Asset/liability management activities including the management of investment securities, short-term and long-term borrowings and derivatives;

•Foreign operations in the U.K. and Canada within our Credit Card business; and

•Customer accommodation activities within our Commercial Banking business.

We have enterprise-wide risk management policies and limits, approved by our Board of Directors, which govern our market risk management activities. Our objective is to manage our exposure to market risk in accordance with these policies and limits based on prevailing market conditions and long-term expectations. We provide additional information below about our primary sources of market risk, our market risk management strategies and the measures that we use to evaluate these exposures.

Interest Rate Risk

Interest rate risk represents exposure to financial instruments whose values vary with the level or volatility of interest rates. We are exposed to interest rate risk primarily from the differences in the timing between the maturities or repricing of assets and liabilities. We manage our interest rate risk primarily by entering into interest rate swaps and other derivative instruments which could include caps, floors, options, futures and forward contracts.

We use various industry standard market risk measurement techniques and analyses to measure, assess and manage the impact of changes in interest rates on our net interest income and our economic value of equity and changes in foreign exchange rates on our non-dollar-denominated funding and non-dollar equity investments in foreign operations.

Net Interest Income Sensitivity

Our net interest income sensitivity measure estimates the impact of hypothetical instantaneous movements in interest rates relative to our baseline interest rate forecast on our projected 12-month net interest income. Net interest income sensitivity metrics are derived using the following key assumptions:

•As of September 30, 2024, our metrics assume a market implied baseline interest rate projection for the upper limit of the Federal Funds Target Rate of 4.25% and 3.00% at December 31, 2024 and December 31, 2025, respectively.

•In addition to our existing assets, liabilities and derivative positions, we incorporate expected future business growth assumptions. These assumptions include loan and deposit growth, pricing, plans for projected changes in our funding mix and our securities and cash position from our internal corporate outlook that is used in our financial planning process.

•The analysis assumes this forecast of expected future business growth remains unchanged between the baseline rate forecast and rate shock scenarios, including no changes to our interest rate risk management activities like securities and hedging actions.

•We incorporate the dynamic nature of deposit re-pricing, which includes pricing lags and changes in deposit beta and mix as interest rates change, and the prepayment sensitivity of our mortgage securities to the level of interest rates. In our models, deposit betas and mortgage security prepayments vary dynamically based on the level of interest rates and by product type. In the contexts used in this section, “beta” refers to the change in deposit rate paid relative to the change in the federal funds rate.

•In instances where an interest rate scenario would result in a rate less than 0%, we assume a rate of 0% for that scenario. This assumption applies only to jurisdictions that do not have a practice of employing negative policy rates. In jurisdictions that have negative policy rates, we do not floor interest rates at 0%.

60 Capital One Financial Corporation (COF)

At the current level of interest rates, our projected 12-month net interest income is expected to increase in higher rate scenarios and decrease in lower rate scenarios. The decrease in lower rate scenarios is driven by lower interest income from our assets, including floating rate credit card and commercial loans, being partially offset by lower interest expense from our deposits and other liabilities, net of our interest rate hedges. Our 12-month net interest income sensitivity increased modestly for the +/- 200 bps scenarios, while the remaining scenarios were largely unchanged as compared to December 31, 2023. Increased net interest income sensitivity to large rate shocks is mainly driven by lower interest rates.

Economic Value of Equity Sensitivity

Our economic value of equity sensitivity measure estimates the impact of hypothetical instantaneous movements in interest rates on the net present value of our assets and liabilities, including derivative exposures. Economic value of equity sensitivity metrics are derived using the following key assumptions:

•As of September 30, 2024, our metrics assume a market implied baseline interest rate projection for the upper limit of the Federal Funds Target Rate of 4.25% and 3.00% at December 31, 2024 and December 31, 2025, respectively.

•The analysis includes only existing assets, liabilities and derivative positions and does not incorporate business growth assumptions or projected balance sheet changes.

•Similar to our net interest income sensitivity measure, we incorporate the dynamic nature of deposit repricing and attrition, which includes pricing lags and changes in deposit beta as interest rates change and the prepayment sensitivity of our mortgage securities to the level of interest rates. In our models, deposit betas and mortgage security prepayments vary dynamically based on the level of interest rates and by product type.

•Balance attrition assumptions for loans, including credit card, auto and commercial loans, remain unchanged between the baseline interest rate forecast and interest rate shock scenarios as those loans are mainly floating rate or shorter duration fixed rate loans and hence paydowns have a low sensitivity to the level of interest rates.

•For assets and liabilities with embedded optionality, such as mortgage securities and deposit balances, we utilize monte carlo simulations to assess economic value with industry-standard term structure modeling of interest rates.

•Our calculations of net present value apply appropriate spreads over the benchmark yield curve for select assets and liabilities to capture the inherent risks (including credit risk) to discount expected interest and principal cash flows.

•In instances where an interest rate scenario would result in a rate less than 0%, we assume a rate of 0% for that scenario. This assumption applies only to jurisdictions that do not have a practice of employing negative policy rates. In jurisdictions that have negative policy rates, we do not floor interest rates at 0%.

Our current economic value of equity sensitivity profile demonstrates that our economic value of equity decreases in higher interest rate scenarios and increases in lower interest rate scenarios. The decrease in higher rate scenarios is due to the declines in the projected value of our fixed rate assets being only partially offset by corresponding movements in the projected value of our deposits and other liabilities. The pace of economic value of equity decrease is larger for the +200 bps scenario as our deposits are assumed to reprice more rapidly in higher interest rate environments. Our current economic value of equity sensitivity decreased modestly in both higher and lower rate scenarios as compared to December 31, 2023. The decrease in economic value of equity sensitivity is driven by lower interest rates.

61 Capital One Financial Corporation (COF)

Table 32 shows the estimated percentage impact on our projected baseline net interest income and our current economic value of equity calculated under the methodology described above as of September 30, 2024 and December 31, 2023.

Table 32: Interest Rate Sensitivity Analysis

	September 30, 2024		December 31, 2023
Estimated impact on projected baseline net interest income:
+200 basis points	1.2	%	0.7	%
+100 basis points	0.9		0.8
+50 basis points	0.5		0.4
–50 basis points	(0.5)		(0.5)
–100 basis points	(1.0)		(0.9)
–200 basis points	(2.6)		(2.0)
Estimated impact on economic value of equity:
+200 basis points	(7.0)		(8.4)
+100 basis points	(3.0)		(3.7)
+50 basis points	(1.5)		(1.8)
–50 basis points	1.2		1.6
–100 basis points	2.2		2.9
–200 basis points	2.4		4.0

In addition to these industry standard measures, we also consider the potential impact of alternative interest rate scenarios, such as larger rate shocks, higher than +/- 200 bps, as well as steepening and flattening yield curve scenarios in our internal interest rate risk management decisions. We also regularly review the sensitivity of our interest rate risk metrics to changes in our key modeling assumptions, such as our loan and deposit balance forecasts, mortgage prepayments and deposit repricing.

Limitations of Market Risk Measures

The interest rate risk models that we use in deriving these measures incorporate contractual information, internally-developed assumptions and proprietary modeling methodologies, which project borrower and depositor behavior patterns in certain interest rate environments. Other market inputs, such as interest rates, market prices and interest rate volatility, are also critical components of our interest rate risk measures. We regularly evaluate, update and enhance these assumptions, models and analytical tools as we believe appropriate to reflect our best assessment of the market environment and the expected behavior patterns of our existing assets and liabilities.

There are inherent limitations in any methodology used to estimate the exposure to changes in market interest rates. The sensitivity analysis described above contemplates only certain movements in interest rates and is performed at a particular point in time based on our existing balance sheet and, in some cases, expected future business growth and funding mix assumptions. The strategic actions that management may take to manage our balance sheet may differ significantly from our projections, which could cause our actual earnings and economic value of equity sensitivities to differ substantially from the above sensitivity analysis.

For further information on our interest rate exposures, see “Part I—Item 1. Financial Statements—Note 9—Derivative Instruments and Hedging Activities.”

62 Capital One Financial Corporation (COF)

Foreign Exchange Risk

Foreign exchange risk represents exposure to changes in the values of current holdings and future cash flows denominated in other currencies. We are exposed to foreign exchange risk primarily from the intercompany funding denominated in pound sterling (“GBP”) and the Canadian dollar (“CAD”) that we provide to our businesses in the U.K. and Canada and net equity investments in those businesses. We are also exposed to foreign exchange risk due to changes in the dollar-denominated value of future earnings and cash flows from our foreign operations and from our Euro (“EUR”)-denominated borrowings.

Our non-dollar denominated intercompany funding and EUR-denominated borrowings expose our earnings to foreign exchange transaction risk. We manage these transaction risks by using forward foreign currency derivatives and cross-currency swaps to hedge our exposures. We measure our foreign exchange transaction risk exposures by applying a 1% U.S. dollar appreciation shock against the value of the non-dollar denominated intercompany funding and EUR-denominated borrowings and their related hedges, which shows the impact to our earnings from foreign exchange risk. Our nominal intercompany funding outstanding was 1.2 billion GBP and 973 million GBP as of September 30, 2024 and December 31, 2023, respectively, and 1.4 billion CAD and 1.6 billion CAD as of September 30, 2024 and December 31, 2023, respectively. Our nominal EUR-denominated borrowings outstanding were 502 million EUR and 1.3 billion EUR as of September 30, 2024 and December 31, 2023, respectively.

Our non-dollar equity investments in foreign operations expose our balance sheet and capital ratios to translation risk in AOCI. We manage our translation risk by entering into foreign currency derivatives designated as net investment hedges. We measure these exposures by applying a 30% U.S. dollar appreciation shock, which we believe approximates a significant adverse shock over a one-year time horizon, against the value of the equity invested in our foreign operations net of related net investment hedges where applicable. Our gross equity exposures in our U.K. and Canadian operations were 2.2 billion GBP as of both September 30, 2024 and December 31, 2023, and 2.5 billion CAD and 2.4 billion CAD as of September 30, 2024 and December 31, 2023, respectively.

As a result of our derivative management activities, we believe our net exposure to foreign exchange risk is minimal. For more information, see “Part I—Item 1. Financial Statements—Note 9—Derivative Instruments and Hedging Activities” and “Part I—Item 1. Financial Statements—Note 10—Stockholders’ Equity.”

Risk related to Customer Accommodation Derivatives

We offer interest rate, commodity and foreign currency derivatives as an accommodation to our customers within our Commercial Banking business. We offset the majority of the market risk of these customer accommodation derivatives by entering into offsetting derivatives transactions with other counterparties. We use value-at-risk (“VaR”) as the primary method to measure the market risk in our customer accommodation derivative activities on a daily basis. VaR is a statistical risk measure used to estimate the potential loss from movements observed in the recent market environment. We employ a historical simulation approach using the most recent 500 business days and use a 99% confidence level and a holding period of one business day. As a result of offsetting our customer exposures with other counterparties, we believe that our net exposure to market risk in our customer accommodation derivatives is minimal. For further information on our risk related to customer accommodation derivatives, see “Part I—Item 1. Financial Statements—Note 9—Derivative Instruments and Hedging Activities.”

SUPERVISION AND REGULATION

We provide information on our Supervision and Regulation in our 2023 Form 10-K under “Part I—Item 1. Business—Supervision and Regulation” and in our Quarterly Reports on Form 10-Q for the period ended March 31, 2024 and June 30, 2024 under “Part I—Item 2. MD&A—Supervision and Regulation.”

63 Capital One Financial Corporation (COF)

FORWARD-LOOKING STATEMENTS

From time to time, we have made and will make forward-looking statements, including those that discuss, among other things: strategies, goals, outlook or other non-historical matters; projections, revenues, income, returns, expenses, assets, liabilities, capital and liquidity measures, capital allocation plans, accruals for claims in litigation and for other claims against us; earnings per share, efficiency ratio, operating efficiency ratio or other financial measures for us; future financial and operating results; our plans, objectives, expectations and intentions; and the assumptions that underlie these matters.

To the extent that any such information is forward-looking, it is intended to fit within the safe harbor for forward-looking information provided by the Private Securities Litigation Reform Act of 1995.

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 us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. For additional information on factors that could materially influence forward-looking statements included in this Report, see the risk factors set forth under “Part I—Item 1A. Risk Factors” in our 2023 Form 10-K. You should carefully consider the factors discussed below, and in our Risk Factors or other disclosures, in evaluating these forward-looking statements.

Numerous factors could cause our actual results to differ materially from those described in such forward-looking statements, including, among other things:

•risks relating to the pending Transaction, including the risk that the cost savings and any revenue synergies and other anticipated benefits from the Transaction may not be fully realized or may take longer than anticipated to be realized; disruption to our business and to Discover’s business as a result of the announcement and pendency of the Transaction; the risk that the integration of Discover’s business and operations into ours, including into our compliance management program, will be materially delayed or will be more costly or difficult than expected, or that we are otherwise unable to successfully integrate Discover’s business into ours, including as a result of unexpected factors or events; the possibility that the requisite regulatory, stockholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated (and the risk that requisite regulatory approvals may result in the imposition of conditions that could adversely affect us or the expected benefits of the Transaction following the closing of the Transaction); reputational risk and the reaction of customers, suppliers, employees or other business partners of ours or of Discover to the Transaction; the failure of the closing conditions in the Merger Agreement to be satisfied, or any unexpected delay in completing the Transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement; the dilution caused by our issuance of additional shares of our common stock in connection with the Transaction; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; risks related to management and oversight of our expanded business and operations following the Transaction due to the increased size and complexity of our business; the possibility of increased scrutiny by, and/or additional regulatory requirements of, governmental authorities as a result of the Transaction or the size, scope and complexity of our business operations following the Transaction; the outcome of any legal or regulatory proceedings that may be currently pending or later instituted against us (before or after the Transaction) or against Discover; the risk that expectations regarding the timing, completion and accounting and tax treatments of the Transaction are not met; the risk that any announcements relating to the Transaction could have adverse effects on the market price of our common stock; certain restrictions during the pendency of the Transaction; the diversion of management’s attention from ongoing business operations and opportunities; the risk that revenues following the Transaction may be lower than expected and/or the risk that certain expenses, such as the provision for credit losses, of Discover or the surviving entity may be greater than expected; our and Discover’s success in executing their respective business plans and strategies and managing the risks involved in the foregoing; effects of the announcement, pendency or completion of the Transaction on our or Discover’s ability to retain customers and retain and hire key personnel and maintain relationships with our and Discover’s suppliers and other business partners, and on our and Discover’s operating results and businesses generally; and other factors that may affect our future results or the future results of Discover;

64 Capital One Financial Corporation (COF)

•changes and instability in the macroeconomic environment, resulting from factors that include, but are not limited to monetary policy actions, geopolitical conflicts or instability, such as the war between Ukraine and Russia and the war between Israel and Hamas, labor shortages, government shutdowns, inflation and deflation, potential recessions, lower demand for credit, changes in deposit practices and payment patterns;

•increases or fluctuations in credit losses and delinquencies and the impact of incorrectly estimated expected losses, which could result in inadequate reserves;

•compliance with new and existing domestic and foreign laws, regulations and regulatory expectations;

•limitations on our ability to receive dividends from our subsidiaries;

•our ability to maintain adequate capital or liquidity levels or to comply with revised capital or liquidity requirements, which could have a negative impact on our financial results and our ability to return capital to our stockholders;

•the extensive use, reliability, and accuracy of the models, artificial intelligence, and data on which we rely;

•increased costs, reductions in revenue, reputational damage, legal exposure and business disruptions that can result from a cyber-attack or other security incident on us or third parties (including their supply chains) with which we conduct business, including an incident that results in the theft, loss, manipulation or misuse of information, or the disabling of systems and access to information critical to business operations;

•developments, changes or actions relating to any litigation, governmental investigation or regulatory enforcement action or matter involving us;

•the amount and rate of deposit growth and changes in deposit costs;

•our ability to execute on our strategic initiatives and operational plans;

•our response to competitive pressures;

•our business, financial condition and results of operations may be adversely affected by merchants’ efforts to reduce the fees charged by credit and debit card networks to facilitate card transactions, and by legislation and regulation impacting such fees;

•our success in integrating acquired businesses and loan portfolios, and our ability to realize anticipated benefits from announced transactions and strategic partnerships;

•our ability to develop, operate, and adapt our operational, technology and organizational infrastructure suitable for the nature of our business;

•the success of our marketing efforts in attracting and retaining customers;

•our risk management strategies;

•changes in the reputation of, or expectations regarding, us or the financial services industry with respect to practices, products, services or financial condition;

•fluctuations in interest rates or volatility in the capital markets;

•our ability to attract, develop, retain and motivate key senior leaders and skilled employees;

•climate change manifesting as physical or transition risks;

•our assumptions or estimates in our financial statements;

•the soundness of other financial institutions and other third parties, actual or perceived;

•our ability to invest successfully in and introduce digital and other technological developments across all our businesses;

65 Capital One Financial Corporation (COF)

•a downgrade in our credit ratings;

•our ability to manage risks from catastrophic events;

•compliance with applicable laws and regulations related to privacy, data protection and data security, in addition to compliance with our own privacy policies and contractual obligations to third parties;

•our ability to protect our intellectual property; and

•other risk factors identified from time to time in our public disclosures, including in the reports that we file with the SEC.

66 Capital One Financial Corporation (COF)

SUPPLEMENTAL TABLE

Reconciliation of Non-GAAP Measures

The following non-GAAP measure consists of our adjusted results that we believe helps investors and users of our financial information understand the effect of adjusting items on our selected reported results; however, it may not be comparable to similarly-titled measures reported by other companies. This adjusted result provides alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following table presents reconciliations of the non-GAAP measure to the applicable amounts measured in accordance with U.S. GAAP. The non-GAAP measure below should not be viewed as a substitute for reported results determined in accordance with U.S. GAAP.

Table A—Reconciliation of Non-GAAP Measures

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in millions, except as noted)	2024			2023			2024			2023
Adjusted operating efficiency ratio:
Operating expense (U.S. GAAP)	$	4,201		$	3,888		$	12,210		$	11,844
Discover integration expenses	(63)			—			(94)			—
FDIC special assessment	9			—			(41)			—
Adjusted operating expense (non-GAAP)	$	4,147		$	3,888		$	12,075		$	11,844
Total net revenue (loss) (U.S. GAAP)	$	10,014		$	9,366		$	28,922		$	27,281
Walmart program agreement termination contra revenue impact	—			—			27			—
Adjusted net revenue (non-GAAP)	$	10,014		$	9,366		$	28,949		$	27,281
Operating efficiency ratio (U.S. GAAP)	41.95%			41.51%			42.22%			43.41%
Impact of adjustments noted above	(54)		bps	—		bps	(51)		bps	—		bps
Adjusted operating efficiency ratio (non-GAAP)	41.41%			41.51%			41.71%			43.41%

The following non-GAAP measures consist of TCE, tangible assets and metrics computed using these amounts, which include tangible book value per common share, return on average tangible assets, return on average TCE and TCE ratio. We consider these metrics to be key financial performance measures that management uses in assessing capital adequacy and the level of returns generated. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the 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 U.S. GAAP. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with U.S. GAAP.

67 Capital One Financial Corporation (COF)

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions, except as noted)	2024		2023		2024		2023
Tangible Common Equity (Average):
Stockholders’ equity	$	61,289	$	55,012	$	59,139	$	55,048
Goodwill and other intangible assets(1)	(15,225)		(15,348)		(15,251)		(15,174)
Noncumulative perpetual preferred stock	(4,845)		(4,845)		(4,845)		(4,845)
Tangible common equity	$	41,219	$	34,819	$	39,043	$	35,029
Return on Tangible Common Equity (Average):
Net income available to common stockholders	$	1,692	$	1,705	$	3,423	$	3,943
Tangible common equity (Average)	41,219		34,819		39,043		35,029
Return on tangible common equity(2)	16.42%		19.59%		11.69%		15.01%
Tangible Assets (Average):
Total assets	$	481,219	$	469,860	$	477,816	$	466,279
Goodwill and other intangible assets(1)	(15,225)		(15,348)		(15,251)		(15,174)
Tangible assets	$	465,994	$	454,512	$	462,565	$	451,105
Return on Tangible Assets (Average):
Net income	$	1,777	$	1,790	$	3,654	$	4,181
Tangible assets (Average)	465,994		454,512		462,565		451,105
Return on tangible assets(3)	1.53%		1.58%		1.05%		1.24%

(Dollars in millions, except as noted)	September 30, 2024		September 30, 2023		December 31, 2023
Tangible Common Equity (Period-End):
Stockholders’ equity	$	62,925	$	53,668	$	58,089
Goodwill and other intangible assets(1)	(15,214)		(15,308)		(15,289)
Noncumulative perpetual preferred stock	(4,845)		(4,845)		(4,845)
Tangible common equity	$	42,866	$	33,515	$	37,955
Tangible Assets (Period-End):
Total assets	$	486,433	$	471,435	$	478,464
Goodwill and other intangible assets(1)	(15,214)		(15,308)		(15,289)
Tangible assets	$	471,219	$	456,127	$	463,175
Tangible Book Value per Common Share:
Tangible common equity (period-end)	$	42,866	$	33,515	$	37,955
Outstanding Common Shares	381.5		381.0		380.4
Tangible book value per common share	$	112.36	$	87.97	$	99.78
TCE Ratio
Tangible common equity (Period-end)	$	42,866	$	33,515	$	37,955
Tangible Assets (Period-end)	471,219		456,127		463,175
TCE Ratio(4)	9.1%		7.3%		8.2%

(1)Includes impact of related deferred taxes.

(2)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.

(3)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.

(4)TCE ratio is a non-GAAP measure calculated based on TCE divided by period-end tangible assets.

68 Capital One Financial Corporation (COF)

Glossary and Acronyms

2019 Cybersecurity Incident: The unauthorized access by an outside individual who obtained certain types of personal information relating to people who had applied for our credit card products and to our credit card customers that we announced on July 29, 2019.

2022 Call Report: Consolidated Reports of Condition and Income as of December 31, 2022.

Allowance coverage ratio: Allowance as a percentage of loans held for investment.

Amortized cost: The amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, write-offs, foreign exchange and fair value hedge accounting adjustments.

Annual Report: References to our “2023 Form 10-K” are to our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Bank: CONA, Capital One Financial Corporation’s principal operating subsidiary.

Basel Committee: The Basel Committee on Banking Supervision.

Basel III Capital Rules: The regulatory capital requirements established by the Federal Banking Agencies in July 2013 to implement the Basel III capital framework developed by the Basel Committee as well as certain Dodd-Frank Act and other capital provisions.

Basel III Finalization Proposal: The notice of proposed rulemaking released by the Federal Banking Agencies on July 27, 2023 to revise the Basel III Capital Rules applicable to banking organizations with total assets of $100 billion or more and their subsidiary depository institutions.

Basel III standardized approach: The Basel III Capital Rules modified Basel I to create the Basel III standardized approach.

Capital One or the Company: Capital One Financial Corporation and its subsidiaries.

Carrying value (with respect to loans): The amount at which a loan is recorded on the consolidated balance sheets. For loans recorded at amortized cost, carrying value is the unpaid principal balance net of unamortized deferred loan origination fees and costs, and unamortized purchase premium or discount. For loans that are or have been on nonaccrual status, the carrying value is also reduced by any net charge-offs that have been recorded and the amount of interest payments applied as a reduction of principal under the cost recovery method. For credit card loans, the carrying value also includes interest that has been billed to the customer, net of any related reserves. Loans held for sale are recorded at either fair value (if we elect the fair value option) or at the lower of cost or fair value.

CECL: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires an impairment model (known as the CECL model) that is based on expected rather than incurred losses, with an anticipated result of more timely loss recognition. This guidance was effective for us on January 1, 2020.

CECL Transition Election: The optional five-year transition period provided to banking institutions to phase in the impact of the CECL standard on their regulatory capital.

CECL Transition Rule: A rule adopted by the Federal Banking Agencies and effective in 2020 that provides banking institutions an optional five-year transition period to phase in the impact of the CECL standard on their regulatory capital.

Common equity Tier 1 (“CET1”) capital: CET1 capital primarily includes qualifying common shareholders’ equity, retained earnings and certain AOCI amounts less certain deductions for goodwill, intangible assets, and certain deferred tax assets.

CONA: Capital One, National Association, one of our wholly-owned subsidiaries, which offers a broad spectrum of banking products and financial services to consumers, small businesses and commercial clients.

69 Capital One Financial Corporation (COF)

CONA Bank Merger: The merger of Discover Bank, a Delaware-chartered bank and wholly owned subsidiary of Discover, with and into CONA, with CONA as the surviving entity.

Credit risk: The risk to current or projected financial condition and resilience arising from an obligor’s failure to meet the terms of any contract with the Company or otherwise perform as agreed.

Deposit Insurance Fund (“DIF”): A fund maintained by the FDIC to provide insurance coverage for certain deposits. It is funded through assessments on banks.

Derivative: A contract or agreement whose value is derived from changes in interest rates, foreign exchange rates, prices of securities or commodities, credit worthiness for credit default swaps or financial or commodity indices.

Discontinued operations: The operating results of a component of an entity, as defined by Accounting Standards Codification 205, that are removed from continuing operations when that component has been disposed of or it is management’s intention to sell the component.

Discover: Discover Financial Services, a Delaware corporation.

Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”): Regulatory reform legislation signed into law on July 21, 2010. This law broadly affects the financial services industry and contains numerous provisions aimed at strengthening the sound operation of the financial services sector.

Exchange Act: The Securities Exchange Act of 1934, as amended.

eXtensible Business Reporting Language (“XBRL”): A language for the electronic communication of business and financial data.

Federal Banking Agencies: The Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation.

Federal Deposit Insurance Corporation (“FDIC”): An independent U.S. governmental agency that administers the Deposit Insurance Fund.

Federal Reserve: The Board of Governors of the Federal Reserve System.

FICO score: A measure of consumer credit risk provided by credit bureaus, typically produced from statistical modeling software created by FICO (formerly known as “Fair Isaac Corporation”) utilizing data collected by the credit bureaus.

Financial difficulty modification (“FDM”): A FDM is deemed to occur when a loan modification is made to a borrower experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination of these modifications in the current reporting period. FDMs became effective with the adoption of ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023.

Foreign exchange contracts: Contracts that provide for the future receipt or delivery of foreign currency at previously agreed-upon terms.

Framework: The Capital One enterprise-wide risk management framework.

GSE or Agency: A government-sponsored enterprise or agency is a financial services corporation created by the United States Congress. Examples of U.S. government agencies include Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”), Government National Mortgage Association (“Ginnie Mae”) and the Federal Home Loan Banks (“FHLB”).

Interest rate sensitivity: The exposure to interest rate movements.

Interest rate swaps: Contracts in which a series of interest rate flows in a single currency are exchanged over a prescribed period. Interest rate swaps are the most common type of derivative contract that we use in our asset/liability management activities.

70 Capital One Financial Corporation (COF)

Investment grade: Represents a Moody’s long-term rating of Baa3 or better; and/or a S&P long-term rating of BBB- or better; and/or a Fitch long-term rating of BBB- or better; or if unrated, an equivalent rating using our internal risk ratings. Instruments that fall below these levels are considered to be non-investment grade.

Investor Entities: Entities that invest in community development entities (“CDE”) that provide debt financing to businesses and non-profit entities in low-income and rural communities.

LCR Rule: The final rules published by the Basel Committee and as implemented by the Federal Banking Agencies in 2014 for the Basel III Liquidity Coverage Ratio (“LCR”) in the United States. The LCR is calculated by dividing the amount of an institution’s high quality, unencumbered liquid assets by its estimated net cash outflow, as defined and calculated in accordance with the LCR Rule.

Leverage ratio: Tier 1 capital divided by average assets after certain adjustments, as defined by regulators.

Liquidity risk: The risk that the Company will not be able to meet its future financial obligations as they come due, or invest in future asset growth because of an inability to obtain funds at a reasonable price within a reasonable time.

Loan-to-value (“LTV”) ratio: The relationship, expressed as a percentage, between the principal amount of a loan and the appraised value of the collateral securing the loan.

Loss severity: Loss given default.

Managed presentation: A non-GAAP presentation of business segment results derived from our internal management accounting and reporting process, which employs various allocation methodologies, including funds transfer pricing, to assign certain balance sheet assets, deposits and other liabilities and their related revenues and expenses directly or indirectly attributable to each business segment. The results of our individual businesses reflect the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources and are intended to reflect each segment as if it were a stand-alone business.

Market risk: The risk that an institution’s earnings or the economic value of equity could be adversely impacted by changes in interest rates, foreign exchange rates or other market factors.

Master netting agreement: An agreement between two counterparties that have multiple contracts with each other that provides for the net settlement of all contracts through a single payment in the event of default or termination of any one contract.

Merger Agreement: Agreement and Plan of Merger, dated as of February 19, 2024, by and among Discover, Capital One and Merger Sub.

Merger: The merger of Merger Sub with and into Discover, with Discover as the surviving entity, pursuant to the Merger Agreement.

Merger Sub: Vega Merger Sub, Inc.

Mortgage servicing rights (“MSRs”): The right to service a mortgage loan when the underlying loan is sold or securitized. Servicing includes collections for principal, interest and escrow payments from borrowers and accounting for and remitting principal and interest payments to investors.

Net charge-off rate: Represents (annualized) net charge-offs divided by average loans held for investment for the period. Negative net charge-offs and related rates are captioned as net recoveries.

Net interest margin: Represents (annualized) net interest income divided by average interest-earning assets for the period.

Nonperforming loans: Generally include loans that have been placed on nonaccrual status. We do not report loans classified as held for sale as nonperforming.

71 Capital One Financial Corporation (COF)

NSFR Rule: The final rules published by the Basel Committee and as issued by the Federal Banking Agencies in October 2020 implementing the net stable funding ratio (“NSFR”) in the United States. The NSFR measures the stability of our funding profile and requires us to maintain minimum amounts of stable funding to support our assets, commitments and derivatives exposures over a one-year period.

PR Rules: The U.S. prudential regulators’ margin rules for uncleared derivatives.

Public Fund Deposits: Deposits that are derived from a variety of political subdivisions such as school districts and municipalities.

Purchase volume: Consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.

Rating agency: An independent agency that assesses the credit quality and likelihood of default of an issue or issuer and assigns a rating to that issue or issuer.

Repurchase agreement: An instrument used to raise short-term funds whereby securities are sold with an agreement for the seller to buy back the securities at a later date.

Restructuring charges: Charges associated with the realignment of resources supporting various businesses, primarily consisting of severance and related benefits pursuant to our ongoing benefit programs and impairment of certain assets related to the business locations and/or activities being exited.

Risk-weighted assets: On- and off-balance sheet assets that are assigned to one of several broad risk categories and weighted by factors representing their risk and potential for default.

Second Step Merger: The merger of Discover with and into Capital One, with Capital One as the surviving entity.

Securitized debt obligations: A type of asset-backed security and structured credit product constructed from a portfolio of fixed-income assets.

Stress capital buffer requirement: A component of our standardized approach capital conservation buffer, which is recalibrated annually based on the results of our supervisory stress tests.

Stress Capital Buffer Rule: The final rule issued by the Federal Reserve in March 2020 to implement the stress capital buffer requirement.

Subprime: For purposes of lending in our Credit Card business, we generally consider FICO scores of 660 or below, or other equivalent risk scores, to be subprime. For purposes of auto lending in our Consumer Banking business, we generally consider FICO scores of 620 or below to be subprime.

Tangible common equity (“TCE”): A non-GAAP financial measure calculated as common equity less goodwill and other intangible assets inclusive of any related deferred tax liabilities.

This Report: Quarterly Report on Form 10-Q for the period ended September, 30 2024.

Transaction: On February 19, 2024, we entered into the Merger Agreement to acquire Discover in an all-stock transaction.

Unfunded lending commitments: Legally binding agreements to provide a defined level of financing until a specified future date.

U.S. GAAP: Accounting principles generally accepted in the United States of America. Accounting rules and conventions defining acceptable practices in preparing financial statements in the U.S.

U.S. Real Gross Domestic Product (“GDP”): An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year.

72 Capital One Financial Corporation (COF)

Variable interest entity (“VIE”): An entity that, by design, either (i) lacks sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties; or (ii) has equity investors that do not have (a) the ability to make significant decisions relating to the entity’s operations through voting rights, (b) the obligation to absorb the expected losses, and/or (c) the right to receive the residual returns of the entity.

73 Capital One Financial Corporation (COF)

Acronyms

ABS: Asset-backed securities

AOCI: Accumulated other comprehensive income

ASU: Accounting Standards Update

ATM: Automated teller machine

BHC: Bank holding company

bps: Basis points

CAD: Canadian dollar

CCP: Central Counterparty Clearinghouse, or Central Clearinghouse

CDE: Community development entities

CECL: Current expected credit loss

CEO: Chief Executive Officer

CET1: Common equity Tier 1 capital

CFO: Chief Financial Officer

CFPB: Consumer Financial Protection Bureau

CMBS: Commercial mortgage-backed securities

CME: Chicago Mercantile Exchange

COEP: Capital One (Europe) plc

COF: Capital One Financial Corporation

CONA: Capital One, National Association

CVA: Credit valuation adjustment

DCF: Discounted cash flow

DIF: Deposit Insurance Fund

DTCC: Depository Trust and Clearing Corporation

DVA: Debit valuation adjustment

EUR: Euro

Fannie Mae: Federal National Mortgage Association

FASB: Financial Accounting Standards Board

FCA: Financial Conduct Authority

FCM: Futures commission merchant

FDM: Financial difficulty modification

FDIC: Federal Deposit Insurance Corporation

FFIEC: Federal Financial Institutions Examination Council

FHLB: Federal Home Loan Banks

FICC - GSD: Fixed Income Clearing Corporation - Government Securities Division

FICO: Fair Isaac Corporation

Fitch: Fitch Ratings

Freddie Mac: Federal Home Loan Mortgage Corporation

GAAP: Generally accepted accounting principles in the U.S.

GBP: Pound sterling

GDP: U.S. Real Gross Domestic Product

Ginnie Mae: Government National Mortgage Association

G-SIB: Global systemically important banks

GSE or Agency: Government-sponsored enterprise

74 Capital One Financial Corporation (COF)

ICE: Intercontinental Exchange

IRM: Independent Risk Management

LCH: LCH Group

LCR: Liquidity coverage ratio

LTV: Loan-to-Value

Moody’s: Moody’s Investors Service

MSRs: Mortgage servicing rights

NORA: Notice of Opportunity to Respond and Advise

NSFR: Net stable funding ratio

OCC: Office of the Comptroller of the Currency

OCI: Other comprehensive income

OPC: Canada’s Office of Privacy Commissioner

OTC: Over-the-counter

PCA: Prompt corrective action

PCCR: Purchased credit card relationship

PCD: Purchased Credit-Deteriorated

PPI: Payment protection insurance

RMBS: Residential mortgage-backed securities

S&P: Standard & Poor’s

SEC: U.S. Securities and Exchange Commission

SOFR: Secured Overnight Financing Rate

TCE: Tangible common equity

TDR: Troubled debt restructuring

U.K.: United Kingdom

U.S.: United States of America

VaR: Value-At-Risk

VIE: Variable interest entity

75 Capital One Financial Corporation (COF)

Item 1. Financial Statements
	Page
Consolidated Financial Statements	77
Consolidated Statements of Income	77
Consolidated Statements of Comprehensive Income	78
Consolidated Balance Sheets	79
Consolidated Statements of Changes in Stockholders’ Equity	80
Consolidated Statements of Cash Flows	82
Notes to Consolidated Financial Statements	84
Note 1—Summary of Significant Accounting Policies	84
Note 2—Business Combinations	86
Note 3—Investment Securities	87
Note 4—Loans	90
Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments	105
Note 6—Variable Interest Entities and Securitizations	110
Note 7—Goodwill and Other Intangible Assets	114
Note 8—Deposits and Borrowings	115
Note 9—Derivative Instruments and Hedging Activities	116
Note 10—Stockholders’ Equity	126
Note 11—Earnings Per Common Share	130
Note 12—Fair Value Measurement	131
Note 13—Business Segments and Revenue from Contracts with Customers	139
Note 14—Commitments, Contingencies, Guarantees and Others	143

76 Capital One Financial Corporation (COF)

CAPITAL ONE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions, except per share-related data)	2024		2023		2024		2023
Interest income:
Loans, including loans held for sale	$	10,547	$	9,696	$	30,460	$	27,476
Investment securities	733		627		2,120		1,881
Other	580		550		1,737		1,436
Total interest income	11,860		10,873		34,317		30,793
Interest expense:
Deposits	2,945		2,611		8,631		6,744
Securitized debt obligations	234		249		753		696
Senior and subordinated notes	596		579		1,793		1,596
Other borrowings	9		11		30		35
Total interest expense	3,784		3,450		11,207		9,071
Net interest income	8,076		7,423		23,110		21,722
Provision for credit losses	2,482		2,284		9,074		7,569
Net interest income after provision for credit losses	5,594		5,139		14,036		14,153
Non-interest income:
Interchange fees, net	1,228		1,234		3,622		3,586
Service charges and other customer-related fees	501		453		1,422		1,243
Net securities gains (losses)	(35)		0		(35)		0
Other	244		256		803		730
Total non-interest income	1,938		1,943		5,812		5,559
Non-interest expense:
Salaries and associate benefits	2,391		2,274		7,069		7,018
Occupancy and equipment	587		518		1,692		1,532
Marketing	1,113		972		3,187		2,755
Professional services	402		295		980		909
Communications and data processing	358		344		1,064		1,038
Amortization of intangibles	20		24		58		60
Other	443		433		1,347		1,287
Total non-interest expense	5,314		4,860		15,397		14,599
Income from continuing operations before income taxes	2,218		2,222		4,451		5,113
Income tax provision	441		432		797		932
Net income	1,777		1,790		3,654		4,181
Dividends and undistributed earnings allocated to participating securities	(28)		(28)		(60)		(67)
Preferred stock dividends	(57)		(57)		(171)		(171)
Net income available to common stockholders	$	1,692	$	1,705	$	3,423	$	3,943
Basic earnings per common share:
Net income per basic common share	$	4.42	$	4.46	$	8.94	$	10.31
Diluted earnings per common share:
Net income per diluted common share	$	4.41	$	4.45	$	8.92	$	10.28

See Notes to Consolidated Financial Statements.
	77	Capital One Financial Corporation (COF)

CAPITAL ONE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2024		2023		2024		2023
Net income	$	1,777	$	1,790	$	3,654	$	4,181
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale	2,300		(2,108)		1,272		(2,034)
Net unrealized gains (losses) on hedging relationships	1,069		(259)		677		(282)
Foreign currency translation adjustments	45		(39)		31		8
Other	0		0		1		0
Other comprehensive income (loss), net of tax	3,414		(2,406)		1,981		(2,308)
Comprehensive income (loss)	$	5,191	$	(616)	$	5,635	$	1,873

    

See Notes to Consolidated Financial Statements.
	78	Capital One Financial Corporation (COF)

CAPITAL ONE FINANCIAL CORPORATION

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in millions, except per share-related data)	September 30, 2024		December 31, 2023
Assets:
Cash and cash equivalents:
Cash and due from banks	$	3,976	$	4,903
Interest-bearing deposits and other short-term investments	45,322		38,394
Total cash and cash equivalents	49,298		43,297
Restricted cash for securitization investors	421		458
Securities available for sale (amortized cost of $90.8 billion and $88.1 billion and allowance for credit losses of $3 million and $4 million as of September 30, 2024 and December 31, 2023, respectively)	83,500		79,117
Loans held for investment:
Unsecuritized loans held for investment	292,061		289,229
Loans held in consolidated trusts	28,182		31,243
Total loans held for investment	320,243		320,472
Allowance for credit losses	(16,534)		(15,296)
Net loans held for investment	303,709		305,176
Loans held for sale ($77 million and $347 million carried at fair value as of September 30, 2024 and December 31, 2023, respectively)	96		854
Premises and equipment, net	4,440		4,375
Interest receivable	2,577		2,478
Goodwill	15,083		15,065
Other assets	27,309		27,644
Total assets	$	486,433	$	478,464
Liabilities:
Interest payable	$	705	$	649
Deposits:
Non-interest-bearing deposits	26,378		28,024
Interest-bearing deposits	327,253		320,389
Total deposits	353,631		348,413
Securitized debt obligations	15,881		18,043
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	520		538
Senior and subordinated notes	32,911		31,248
Other borrowings	24		27
Total other debt	33,455		31,813
Other liabilities	19,836		21,457
Total liabilities	423,508		420,375
Commitments, contingencies and guarantees (see Note 14)
Stockholders’ equity:
Preferred stock (par value $0.01 per share; 50,000,000 shares authorized; 4,975,000 shares issued and outstanding as of both September 30, 2024 and December 31, 2023)	0		0
Common stock (par value $0.01 per share; 1,000,000,000 shares authorized; 701,557,753 and 696,242,668 shares issued as of September 30, 2024 and December 31, 2023, respectively; 381,510,336 and 380,389,609 shares outstanding as of September 30, 2024 and December 31, 2023, respectively)	7		7
Additional paid-in capital, net	36,216		35,541
Retained earnings	63,698		60,945
Accumulated other comprehensive loss	(6,287)		(8,268)
Treasury stock, at cost (par value $0.01 per share; 320,047,417 and 315,853,059 shares as of September 30, 2024 and December 31, 2023, respectively)	(30,709)		(30,136)
Total stockholders’ equity	62,925		58,089
Total liabilities and stockholders’ equity	$	486,433	$	478,464

See Notes to Consolidated Financial Statements.
	79	Capital One Financial Corporation (COF)

CAPITAL ONE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

(Dollars in millions)	Preferred Stock			Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance as of December 31, 2023	4,975,000	$	0	696,242,668	$	7	$	35,541	$	60,945	$	(8,268)	$	(30,136)	$	58,089
Cumulative effects of accounting standards adoption(1)									(25)						(25)
Comprehensive income (loss)									1,280		(1,266)				14
Dividends—common stock(2)				24,969	0		3		(238)						(235)
Dividends—preferred stock									(57)						(57)
Purchases of treasury stock													(249)		(249)
Issuances of common stock and restricted stock, net of forfeitures				3,470,983	0		80								80
Exercises of stock options				15,000	0		1								1
Compensation expense for restricted stock units							183								183
Balance as of March 31, 2024	4,975,000	$	0	699,753,620	$	7	$	35,808	$	61,905	$	(9,534)	$	(30,385)	$	57,801
Comprehensive income (loss)									597		(167)				430
Dividends—common stock(2)				8,354	0		2		(234)						(232)
Dividends—preferred stock									(57)						(57)
Purchases of treasury stock													(163)		(163)
Issuances of common stock and restricted stock, net of forfeitures				941,120	0		95								95
Compensation expense for restricted stock units							107								107
Balance as of June 30, 2024	4,975,000	$	0	700,703,094	$	7	$	36,012	$	62,211	$	(9,701)	$	(30,548)	$	57,981
Comprehensive income									1,777		3,414				5,191
Dividends—common stock(2)				2,846	0		0		(233)						(233)
Dividends—preferred stock									(57)						(57)
Purchases of treasury stock													(161)		(161)
Issuances of common stock and restricted stock, net of forfeitures				691,072	0		76								76
Exercises of stock options				160,741	0		3								3
Compensation expense for restricted stock units							125								125
Balance as of September 30, 2024	4,975,000	$	0	701,557,753	$	7	$	36,216	$	63,698	$	(6,287)	$	(30,709)	$	62,925

See Notes to Consolidated Financial Statements.
	80	Capital One Financial Corporation (COF)

CAPITAL ONE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

(Dollars in millions)	Preferred Stock			Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance as of December 31, 2022	4,975,000	$	0	690,334,422	$	7	$	34,725	$	57,184	$	(9,916)	$	(29,418)	$	52,582
Cumulative effects of accounting standards adoption(3)									48						48
Comprehensive income									960		1,376				2,336
Dividends—common stock(2)				26,635	0		3		(237)						(234)
Dividends—preferred stock									(57)						(57)
Purchases of treasury stock													(246)		(246)
Issuances of common stock and restricted stock, net of forfeitures				2,972,149	0		76								76
Compensation expense for restricted stock units							148								148
Balance as of March 31, 2023	4,975,000	$	0	693,333,206	$	7	$	34,952	$	57,898	$	(8,540)	$	(29,664)	$	54,653
Cumulative effects of accounting standards adoption(4)									(11)						(11)
Comprehensive income (loss)									1,431		(1,278)				153
Dividends—common stock(2)				4,745	0		1		(233)						(232)
Dividends—preferred stock									(57)						(57)
Purchases of treasury stock													(157)		(157)
Issuances of common stock and restricted stock, net of forfeitures				989,004	0		88								88
Compensation expense for restricted stock units							122								122
Balance as of June 30, 2023	4,975,000	$	0	694,326,955	$	7	$	35,163	$	59,028	$	(9,818)	$	(29,821)	$	54,559
Comprehensive income (loss)									1,790		(2,406)				(616)
Dividends—common stock(2)				4,078	0		0		(232)						(232)
Dividends—preferred stock									(57)						(57)
Purchases of treasury stock													(157)		(157)
Issuances of common stock and restricted stock, net of forfeitures				943,409	0		71								71
Exercises of stock options				62,256	0		4								4
Compensation expense for restricted stock units							96								96
Balance as of September 30, 2023	4,975,000	$	0	695,336,698	$	7	$	35,334	$	60,529	$	(12,224)	$	(29,978)	$	53,668

________

(1)Impact from the adoption of Accounting Standards Update (“ASU”) 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method as of January 1, 2024.

(2)We declared dividends per share on our common stock of $0.60 in the third quarter of 2024 and 2023, and $1.80 in the first nine months of 2024 and 2023.

(3)Impact from the adoption of ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures as of January 1, 2023.

(4)We have equity method investments in certain non-public entities which adopted ASU 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) as of January 1, 2023. The impact to retained earnings was recorded in the second quarter of 2023, on a one quarter lag consistent with our standard operating procedures for equity method investments.

See Notes to Consolidated Financial Statements.
	81	Capital One Financial Corporation (COF)

CAPITAL ONE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months Ended September 30,
(Dollars in millions)	2024		2023
Operating activities:
Income from continuing operations, net of tax	$	3,654	$	4,181
Net income	3,654		4,181
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	9,074		7,569
Depreciation and amortization, net	2,423		2,428
Deferred tax benefit	(501)		(513)
Net securities losses	35		0
Loss on sales of loans	27		1
Stock-based compensation expense	425		372
Other	37		(46)
Loans held for sale:
Originations and purchases	(2,603)		(3,990)
Proceeds from sales and paydowns	2,887		3,847
Changes in operating assets and liabilities:
Changes in interest receivable	(99)		(350)
Changes in other assets	913		(483)
Changes in interest payable	56		158
Changes in other liabilities	(617)		301
Net cash from operating activities	15,711		13,475
Investing activities:
Securities available for sale:
Purchases	(11,677)		(7,334)
Proceeds from paydowns and maturities	8,732		6,663
Proceeds from sales	175		0
Loans:
Net changes in loans originated as held for investment	(9,984)		(8,827)
Principal recoveries of loans previously charged off	2,197		1,715
Changes in premises and equipment	(848)		(700)
Net cash used in acquisitions	0		(2,785)
Net cash used in other investing activities	(756)		(962)
Net cash used in investing activities	$	(12,161)	$	(12,230)

See Notes to Consolidated Financial Statements.
	82	Capital One Financial Corporation (COF)

CAPITAL ONE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months Ended September 30,
(Dollars in millions)	2024		2023
Financing activities:
Deposits and borrowings:
Changes in deposits	$	4,987	$	13,080
Issuance of securitized debt obligations	997		2,443
Maturities and paydowns of securitized debt obligations	(3,434)		(2,003)
Issuance of senior and subordinated notes	3,985		5,728
Maturities and paydowns of senior and subordinated notes	(2,911)		(4,886)
Changes in other borrowings	(21)		(369)
Common stock:
Net proceeds from issuances	251		235
Dividends paid	(700)		(698)
Preferred stock:
Dividends paid	(171)		(171)
Purchases of treasury stock	(573)		(560)
Proceeds from share-based payment activities	4		4
Net cash from financing activities	2,414		12,803
Changes in cash, cash equivalents and restricted cash for securitization investors	5,964		14,048
Cash, cash equivalents and restricted cash for securitization investors, beginning of the period	43,755		31,256
Cash, cash equivalents and restricted cash for securitization investors, end of the period	$	49,719	$	45,304
Supplemental cash flow information:
Non-cash items:
Interest paid	9,831		10,196
Income tax paid	563		871

See Notes to Consolidated Financial Statements.
	83	Capital One Financial Corporation (COF)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company

Capital One Financial Corporation, a Delaware corporation established in 1994 and headquartered in McLean, Virginia, is a diversified financial services holding company with banking and non-banking subsidiaries. Capital One Financial Corporation and its subsidiaries (the “Company” or “Capital One”) offer a broad array of financial products and services to consumers, small businesses and commercial clients through digital channels, branch locations, cafés and other distribution channels.

As of September 30, 2024, Capital One Financial Corporation’s principal operating subsidiary was Capital One, National Association (“CONA”). The Company is hereafter collectively referred to as “we,” “us” or “our.” CONA is referred to as the “Bank.”

We also offer products outside of the United States of America (“U.S.”) principally through Capital One (Europe) plc (“COEP”), an indirect subsidiary of CONA organized and located in the United Kingdom (“U.K.”), and through a branch of CONA in Canada. Both COEP and our Canadian branch of CONA have the authority to provide credit card loans.

Our principal operations are organized for management reporting purposes into three major business segments, which are defined primarily based on the products and services provided or the types of customer served: Credit Card, Consumer Banking and Commercial Banking. We provide details on our business segments, the integration of any recent material acquisitions into our business segments, and the allocation methodologies and accounting policies used to derive our business segment results in “Note 13—Business Segments and Revenue from Contracts with Customers.”

Basis of Presentation and Use of Estimates

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information.

These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, and related notes thereto, included in Capital One Financial Corporation’s 2023 Annual Report on Form 10-K (“2023 Form 10-K”).

84 Capital One Financial Corporation (COF)

Newly Adopted Accounting Standards During the Nine Months Ended September 30, 2024

Standard	Guidance	Adoption Timing and Financial Statement Impacts
Tax Credit Investments ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023	Permits entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method, if certain criteria are met. Previously, only Low-Income Housing Tax Credit investments were eligible for application of the proportional amortization method.	We adopted this standard on its effective date of January 1, 2024 using a modified retrospective transition method, which results in a cumulative-effect adjustment to retained earnings in the period of adoption. Our adoption of this standard did not have a material impact on our consolidated financial statements. See “Consolidated Statements of Changes in Stockholders’ Equity” and “Note 6—Variable Interest Entities and Securitizations” for additional disclosures.

85 Capital One Financial Corporation (COF)

NOTE 2—BUSINESS COMBINATIONS

On February 19, 2024, the Company entered into an agreement and plan of merger (the “Merger Agreement”), by and among Capital One, Discover Financial Services, a Delaware corporation (“Discover”) and Vega Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of the Company (“Merger Sub”), pursuant to which (a) Merger Sub will merge with and into Discover, with Discover as the surviving entity in the merger (the “Merger”); (b) immediately following the Merger, Discover, as the surviving entity, will merge with and into Capital One, with Capital One as the surviving entity in the second-step merger (the “Second Step Merger”); and (c) immediately following the Second Step Merger, Discover Bank, a Delaware-chartered and wholly owned subsidiary of Discover, will merge with and into CONA, with CONA as the surviving entity in the merger (the “CONA Bank Merger,” and collectively with the Merger and the Second Step Merger, the “Transaction”). The Merger Agreement was unanimously approved by the Boards of Directors of each of Capital One and Discover.

At the effective time of the Merger, each share of common stock of Discover outstanding immediately prior to the effective time of the Merger, other than certain shares held by Discover or Capital One, will be converted into the right to receive 1.0192 shares of common stock of Capital One. Holders of Discover common stock will receive cash in lieu of fractional shares. At the effective time of the Second Step Merger, each share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, of Discover, and each share of 6.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D, of Discover, in each case outstanding immediately prior to the effective time of the Second Step Merger, will be converted into the right to receive a share of newly created series of preferred stock of Capital One having terms that are not materially less favorable than the applicable series of Discover preferred stock. The closing of the Transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals and approval by the stockholders of each of Capital One and Discover.

For the three and nine months ended September 30, 2024, we have incurred $63 million and $94 million of integration expenses related to the agreement to acquire Discover, which are included in Operating Expense in our Consolidated Statements of Income.

86 Capital One Financial Corporation (COF)

NOTE 3—INVESTMENT SECURITIES

Our investment securities portfolio consists of the following: U.S. government-sponsored enterprise or agency (“GSE” or “Agency”) and non-agency residential mortgage-backed securities (“RMBS”), agency commercial mortgage-backed securities (“CMBS”), U.S. Treasury securities and other securities. Agency securities include Government National Mortgage Association (“Ginnie Mae”) guaranteed securities, Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) issued securities. The carrying value of our investments in Agency and U.S. Treasury securities represented 96% and 97% of our total investment securities portfolio as of September 30, 2024 and December 31, 2023, respectively.

The table below presents the amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value aggregated by major security type as of September 30, 2024 and December 31, 2023. Accrued interest receivable of $264 million and $227 million as of September 30, 2024 and December 31, 2023, respectively, is not included in the table below.

Table 3.1: Investment Securities Available for Sale

	September 30, 2024
(Dollars in millions)	Amortized Cost		Allowance  for Credit  Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Investment securities available for sale:
U.S. Treasury securities	$	6,035	$	0	$	10	$	(13)	$	6,032
RMBS:
Agency	72,576		0		205		(7,130)		65,651
Non-agency	576		(3)		86		(3)		656
Total RMBS	73,152		(3)		291		(7,133)		66,307
Agency CMBS	8,613		0		35		(465)		8,183
Other securities(1)	2,971		0		7		0		2,978
Total investment securities available for sale	$	90,771	$	(3)	$	343	$	(7,611)	$	83,500

	December 31, 2023
(Dollars in millions)	Amortized Cost		Allowance  for Credit  Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Investment securities available for sale:
U.S. Treasury securities	$	5,330	$	0	$	1	$	(49)	$	5,282
RMBS:
Agency	71,294		0		104		(8,450)		62,948
Non-agency	610		(4)		89		(5)		690
Total RMBS	71,904		(4)		193		(8,455)		63,638
Agency CMBS	8,961		0		14		(652)		8,323
Other securities(1)	1,868		0		6		0		1,874
Total investment securities available for sale	$	88,063	$	(4)	$	214	$	(9,156)	$	79,117

__________    

(1)Includes $2.4 billion and $1.4 billion of asset-backed securities (“ABS”) as of September 30, 2024 and December 31, 2023, respectively. The remaining amount is primarily comprised of supranational bonds, foreign government bonds and U.S. agency debt bonds.

87 Capital One Financial Corporation (COF)

Investment Securities in a Gross Unrealized Loss Position

The table below provides the gross unrealized losses and fair value of our securities available for sale aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2024 and December 31, 2023. The amounts include securities available for sale without an allowance for credit losses.

Table 3.2: Securities in a Gross Unrealized Loss Position

	September 30, 2024
	Less than 12 Months				12 Months or Longer				Total
(Dollars in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Investment securities available for sale without an allowance for credit losses:
U.S. Treasury securities	$	3,772	$	(4)	$	1,331	$	(9)	$	5,103	$	(13)
RMBS:
Agency	1,807		(10)		52,413		(7,120)		54,220		(7,130)
Non-agency	4		0		10		0		14		0
Total RMBS	1,811		(10)		52,423		(7,120)		54,234		(7,130)
Agency CMBS	192		(1)		5,966		(464)		6,158		(465)
Other securities	776		0		4		0		780		0
Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(1)	$	6,551	$	(15)	$	59,724	$	(7,593)	$	66,275	$	(7,608)

	December 31, 2023
	Less than 12 Months				12 Months or Longer				Total
(Dollars in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Investment securities available for sale without an allowance for credit losses:
U.S. Treasury securities	$	733	$	0	$	2,242	$	(49)	$	2,975	$	(49)
RMBS:
Agency	3,511		(43)		53,987		(8,407)		57,498		(8,450)
Non-agency	1		0		13		(1)		14		(1)
Total RMBS	3,512		(43)		54,000		(8,408)		57,512		(8,451)
Agency CMBS	547		(7)		6,465		(645)		7,012		(652)
Other securities	276		0		4		0		280		0
Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(1)	$	5,068	$	(50)	$	62,711	$	(9,102)	$	67,779	$	(9,152)

__________

(1)    Consists of approximately 2,500 and 2,740 securities in gross unrealized loss positions as of September 30, 2024 and December 31, 2023, respectively.

Maturities and Yields of Investment Securities

The table below summarizes, as of September 30, 2024, the fair value of our investment securities by major security type and contractual maturity as well as the total fair value, amortized cost and weighted-average yields of our investment securities by contractual maturity. Since borrowers may have the right to call or prepay certain obligations, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. The weighted-average yield below represents the effective yield for the investment securities presented on a pre-tax basis and is calculated based on the amortized cost of each security, inclusive of the contractual coupon, the impact of any premium amortization or discount accretion and any hedge accounting relationships.

88 Capital One Financial Corporation (COF)

Table 3.3: Contractual Maturities and Weighted-Average Yields of Securities

	September 30, 2024
(Dollars in millions)	Due in 1 Year or Less		Due > 1 Year through 5 Years		Due > 5 Years through 10 Years		Due > 10 Years		Total
Fair value of securities available for sale:
U.S. Treasury securities	$	3,334	$	1,254	$	1,444	$	0	$	6,032
RMBS(1):
Agency	1		74		1,099		64,477		65,651
Non-agency	0		0		12		644		656
Total RMBS	1		74		1,111		65,121		66,307
Agency CMBS(1)	515		2,930		2,758		1,980		8,183
Other securities	344		2,617		17		0		2,978
Total securities available for sale	$	4,194	$	6,875	$	5,330	$	67,101	$	83,500
Amortized cost of securities available for sale	$	4,204	$	6,980	$	5,569	$	74,018	$	90,771
Weighted-average yield for securities available for sale	4.74%		4.07%		3.89%		3.16%		3.35%

__________

(1)As of September 30, 2024, the weighted-average expected maturities of RMBS and Agency CMBS were 7.4 years and 4.9 years, respectively.

Net Securities Gains or Losses and Proceeds from Sales

For the three and nine months ended September 30, 2024, total proceeds from sales of our securities were $175 million with losses of $35 million. We had no sales of securities for the three and nine months ended September 30, 2023.

Securities Pledged and Received

We pledged investment securities totaling $40.1 billion and $45.1 billion as of September 30, 2024 and December 31, 2023, respectively. These securities are primarily pledged to support our access to FHLB advances and Public Fund Deposits, as well as for other purposes as required or permitted by law. We accepted pledges of securities with a fair value of approximately $11 million and $16 million as of September 30, 2024 and December 31, 2023, respectively, related to our derivative transactions.

89 Capital One Financial Corporation (COF)

NOTE 4—LOANS

Our loan portfolio consists of loans held for investment, including loans held in our consolidated trusts, and loans held for sale. We further divide our loans held for investment into three portfolio segments: Credit Card, Consumer Banking and Commercial Banking. Credit card loans consist of domestic and international credit card loans. Consumer banking loans consist of auto and retail banking loans. Commercial banking loans consist of commercial and multifamily real estate as well as commercial and industrial loans. The information presented in the tables in this note excludes loans held for sale, which are carried at either fair value (if we elect the fair value option) or at the lower of cost or fair value.

Accrued interest receivable of $2.2 billion as of both September 30, 2024 and December 31, 2023, is not included in the tables in this note. The table below presents the composition and aging analysis of our loans held for investment portfolio as of September 30, 2024 and December 31, 2023. The delinquency aging includes all past due loans, both performing and nonperforming.

Table 4.1: Loan Portfolio Composition and Aging Analysis

	September 30, 2024
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	142,633	$	1,982	$	1,469	$	3,316	$	6,767	$	149,400
International card businesses	6,914		116		75		146		337		7,251
Total credit card	149,547		2,098		1,544		3,462		7,104		156,651
Consumer Banking:
Auto	70,682		2,895		1,452		476		4,823		75,505
Retail banking	1,229		13		2		9		24		1,253
Total consumer banking	71,911		2,908		1,454		485		4,847		76,758
Commercial Banking:
Commercial and multifamily real estate	32,016		114		20		49		183		32,199
Commercial and industrial	54,320		114		54		147		315		54,635
Total commercial banking	86,336		228		74		196		498		86,834
Total loans(1)	$	307,794	$	5,234	$	3,072	$	4,143	$	12,449	$	320,243
% of Total loans	96.11%		1.64%		0.96%		1.29%		3.89%		100.00%

    

	December 31, 2023
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	140,860	$	1,968	$	1,471	$	3,367	$	6,806	$	147,666
International card businesses	6,552		116		76		137		329		6,881
Total credit card	147,412		2,084		1,547		3,504		7,135		154,547
Consumer Banking:
Auto	68,768		3,268		1,555		484		5,307		74,075
Retail banking	1,329		15		3		15		33		1,362
Total consumer banking	70,097		3,283		1,558		499		5,340		75,437

90 Capital One Financial Corporation (COF)

	December 31, 2023
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Commercial Banking:
Commercial and multifamily real estate	34,325		0		14		107		121		34,446
Commercial and industrial	55,861		0		0		181		181		56,042
Total commercial banking	90,186		0		14		288		302		90,488
Total loans(1)	$	307,695	$	5,367	$	3,119	$	4,291	$	12,777	$	320,472
% of Total loans	96.01%		1.68%		0.97%		1.34%		3.99%		100.00%

__________

(1)Loans include unamortized premiums, discounts, and deferred fees and costs totaling $1.3 billion and $1.4 billion as of September 30, 2024 and December 31, 2023, respectively.

91 Capital One Financial Corporation (COF)

The following table presents our loans held for investment that are 90 days or more past due that continue to accrue interest, loans that are classified as nonperforming and loans that are classified as nonperforming without an allowance as of September 30, 2024 and December 31, 2023. Nonperforming loans generally include loans that have been placed on nonaccrual status.

Table 4.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans

	September 30, 2024									December 31, 2023
(Dollars in millions)	> 90 Days and Accruing			Nonperforming Loans(1)			Nonperforming  Loans Without an Allowance			> 90 Days and Accruing			Nonperforming Loans(1)			Nonperforming  Loans Without an Allowance
Credit Card:
Domestic credit card	$	3,316		N/A			$	0		$	3,367		N/A			$	0
International card businesses	140			$	11		0			132			$	9		0
Total credit card	3,456			11			0			3,499			9			0
Consumer Banking:
Auto	0			685			0			0			712			0
Retail banking	0			27			14			0			46			19
Total consumer banking	0			712			14			0			758			19
Commercial Banking:
Commercial and multifamily real estate	0			630			314			0			425			335
Commercial and industrial	0			718			552			55			336			193
Total commercial banking	0			1,348			866			55			761			528
Total	$	3,456		$	2,071		$	880		$	3,554		$	1,528		$	547
% of Total loans held for investment	1.08		%	0.65		%	0.27		%	1.11		%	0.48		%	0.17		%

__________

(1)We recognized interest income for loans classified as nonperforming of $6 million and $70 million for the three and nine months ended September 30, 2024, respectively, and $11 million and $47 million for the three and nine months ended September 30, 2023, respectively.

92 Capital One Financial Corporation (COF)

Credit Quality Indicators

We closely monitor economic conditions and loan performance trends to assess and manage our exposure to credit risk. We discuss these risks and our credit quality indicator for each portfolio segment below.

Credit Card

Our credit card loan portfolio is highly diversified across millions of accounts and numerous geographies without significant individual exposure. We therefore generally manage credit risk based on portfolios with common risk characteristics. The risk in our credit card loan portfolio correlates to broad economic trends, such as the U.S. unemployment rate and U.S. Real Gross Domestic Product (“GDP”) growth rate, as well as consumers’ financial condition, all of which can have a material effect on credit performance. The key indicator we assess in monitoring the credit quality and risk of our credit card loan portfolio is delinquency trends, including an analysis of loan migration between delinquency categories over time.

The table below presents our credit card portfolio by delinquency status as of September 30, 2024 and December 31, 2023.

Table 4.3: Credit Card Delinquency Status

	September 30, 2024						December 31, 2023
(Dollars in millions)	Revolving Loans		Revolving Loans Converted to Term		Total		Revolving Loans		Revolving Loans Converted to Term		Total
Credit Card:
Domestic credit card:
Current	$	142,201	$	432	$	142,633	$	140,521	$	339	$	140,860
30-59 days	1,952		30		1,982		1,940		28		1,968
60-89 days	1,450		19		1,469		1,454		17		1,471
Greater than 90 days	3,289		27		3,316		3,339		28		3,367
Total domestic credit card	148,892		508		149,400		147,254		412		147,666
International card businesses:
Current	6,877		37		6,914		6,521		31		6,552
30-59 days	111		5		116		112		4		116
60-89 days	71		4		75		72		4		76
Greater than 90 days	142		4		146		132		5		137
Total international card businesses	7,201		50		7,251		6,837		44		6,881
Total credit card	$	156,093	$	558	$	156,651	$	154,091	$	456	$	154,547

93 Capital One Financial Corporation (COF)

Consumer Banking

Our consumer banking loan portfolio consists of auto and retail banking loans. Similar to our credit card loan portfolio, the risk in our consumer banking loan portfolio correlates to broad economic trends as well as consumers’ financial condition, all of which can have a material effect on credit performance. The key indicator we consider when assessing the credit quality and risk of our auto loan portfolio is borrower credit scores as they measure the creditworthiness of borrowers. Delinquency trends are the key indicator we assess in monitoring the credit quality and risk of our retail banking loan portfolio.

The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of September 30, 2024 and December 31, 2023. We present our auto loan portfolio by Fair Isaac Corporation (“FICO”) scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming.

Table 4.4: Consumer Banking Portfolio by Vintage Year

	September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Auto—At origination FICO scores:(1)
Greater than 660	$	12,790	$	9,219	$	9,214	$	6,501	$	1,832	$	578	$	40,134	$	0	$	0	$	40,134
621-660	4,316		3,827		3,262		2,291		811		330		14,837		0		0		14,837
620 or below	6,045		5,331		4,071		2,935		1,453		699		20,534		0		0		20,534
Total auto	23,151		18,377		16,547		11,727		4,096		1,607		75,505		0		0		75,505
Retail banking—Delinquency status:
Current	113		78		92		52		54		494		883		342		4		1,229
30-59 days	0		0		0		0		0		2		2		11		0		13
60-89 days	0		0		0		0		0		0		0		2		0		2
Greater than 90 days	0		0		0		0		1		7		8		1		0		9
Total retail banking	113		78		92		52		55		503		893		356		4		1,253
Total consumer banking	$	23,264	$	18,455	$	16,639	$	11,779	$	4,151	$	2,110	$	76,398	$	356	$	4	$	76,758

94 Capital One Financial Corporation (COF)

	December 31, 2023
	Term Loans by Vintage Year
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Auto—At origination FICO scores:(1)
Greater than 660	$	12,219	$	12,593	$	9,505	$	3,124	$	1,213	$	309	$	38,963	$	0	$	0	$	38,963
621-660	4,863		4,432		3,346		1,337		592		192		14,762		0		0		14,762
620 or below	6,647		5,539		4,283		2,349		1,131		401		20,350		0		0		20,350
Total auto	23,729		22,564		17,134		6,810		2,936		902		74,075		0		0		74,075
Retail banking—Delinquency status:
Current	98		157		57		65		117		468		962		363		4		1,329
30-59 days	1		0		1		1		0		1		4		11		0		15
60-89 days	0		0		0		0		0		1		1		2		0		3
Greater than 90 days	0		0		0		0		0		8		8		6		1		15
Total retail banking	99		157		58		66		117		478		975		382		5		1,362
Total consumer banking	$	23,828	$	22,721	$	17,192	$	6,876	$	3,053	$	1,380	$	75,050	$	382	$	5	$	75,437

__________

(1)Amounts 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.

95 Capital One Financial Corporation (COF)

Commercial Banking

The key credit quality indicator for our commercial loan portfolios is our internal risk ratings. We assign internal risk ratings to loans based on relevant information about the ability of the borrowers to repay their debt. In determining the risk rating of a particular loan, some of the factors considered are the borrower’s current financial condition, historical and projected future credit performance, prospects for support from financially responsible guarantors, the estimated realizable value of any collateral and current economic trends. The scale based on our internal risk rating system is as follows:

•Noncriticized: Loans that have not been designated as criticized, frequently referred to as “pass” loans.

•Criticized performing: Loans in which the financial condition of the obligor is stressed, affecting earnings, cash flows or collateral values. The borrower currently has adequate capacity to meet near-term obligations; however, the stress, left unabated, may result in deterioration of the repayment prospects at some future date.

•Criticized nonperforming: Loans that are not adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as criticized nonperforming have a well-defined weakness, or weaknesses, which jeopardize the full repayment of the debt. These loans are characterized by the distinct possibility that we will sustain a credit loss if the deficiencies are not corrected and are generally placed on nonaccrual status.

We use our internal risk rating system for regulatory reporting, determining the frequency of credit exposure reviews, and evaluating and determining the allowance for credit losses. Generally, loans that are designated as criticized performing and criticized nonperforming are reviewed quarterly by management to determine if they are appropriately classified/rated and whether any impairment exists. Noncriticized loans are also generally reviewed, at least annually, to determine the appropriate risk rating. In addition, we evaluate the risk rating during the renewal process of any loan or if a loan becomes past due.

The following table presents our commercial banking portfolio of loans held for investment by internal risk ratings as of September 30, 2024 and December 31, 2023. The internal risk rating status includes all past due loans, both performing and nonperforming.

Table 4.5: Commercial Banking Portfolio by Internal Risk Ratings

	September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	1,262	$	2,300	$	3,643	$	2,265	$	965	$	5,096	$	15,531	$	12,591	$	50	$	28,172
Criticized performing	53		91		1,525		294		128		1,048		3,139		161		97		3,397
Criticized nonperforming	23		0		14		141		83		341		602		28		0		630
Total commercial and multifamily real estate	1,338		2,391		5,182		2,700		1,176		6,485		19,272		12,780		147		32,199
Commercial and industrial
Noncriticized	4,106		6,046		10,197		5,770		2,762		7,001		35,882		14,637		144		50,663
Criticized performing	6		193		781		811		118		367		2,276		978		0		3,254
Criticized nonperforming	62		13		128		17		189		120		529		189		0		718
Total commercial and industrial	4,174		6,252		11,106		6,598		3,069		7,488		38,687		15,804		144		54,635
Total commercial banking	$	5,512	$	8,643	$	16,288	$	9,298	$	4,245	$	13,973	$	57,959	$	28,584	$	291	$	86,834

96 Capital One Financial Corporation (COF)

	December 31, 2023
	Term Loans by Vintage Year
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	3,068	$	4,665	$	2,773	$	1,019	$	2,104	$	3,670	$	17,299	$	12,565	$	25	$	29,889
Criticized performing	148		1,494		706		284		463		904		3,999		133		0		4,132
Criticized nonperforming	65		26		124		0		47		163		425		0		0		425
Total commercial and multifamily real estate	3,281		6,185		3,603		1,303		2,614		4,737		21,723		12,698		25		34,446
Commercial and industrial
Noncriticized	6,909		11,935		6,994		3,566		2,359		5,117		36,880		14,822		167		51,869
Criticized performing	353		706		655		237		348		349		2,648		1,189		0		3,837
Criticized nonperforming	13		53		30		18		123		68		305		31		0		336
Total commercial and industrial	7,275		12,694		7,679		3,821		2,830		5,534		39,833		16,042		167		56,042
Total commercial banking	$	10,556	$	18,879	$	11,282	$	5,124	$	5,444	$	10,271	$	61,556	$	28,740	$	192	$	90,488

__________

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

97 Capital One Financial Corporation (COF)

Financial Difficulty Modifications to Borrowers

As part of our loss mitigation efforts, we may provide short-term (one to twelve months) or long-term (greater than twelve months) modifications to a borrower experiencing financial difficulty to improve long-term collectability of the loan and to avoid the need for repossession or foreclosure of collateral.

We consider the impact of all loan modifications when estimating the credit quality of our loan portfolio and establishing allowance levels. For our Commercial Banking customers, loan modifications are also considered in the assignment of an internal risk rating.

For additional information on Financial Difficulty Modifications (“FDMs”), see “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K.

The following tables present the major modification types, amortized cost amounts for each modification type and financial effects for all FDMs undertaken during the three and nine months ended September 30, 2024 and 2023.

Table 4.6: Financial Difficulty Modifications to Borrowers

	Three Months Ended September 30, 2024
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	173		$	60		$	233		—			—			—			—			$	9		$	9		$	242
Term extension	—			—			—			$	10		$	3		$	13		$	286		432			718			731
Principal balance reduction	—			—			—			9			—			9			—			—			—			9
Interest rate reduction and term extension	5			—			5			258			—			258			—			1			1			264
Other(1)	—			—			—			2			—			2			21			31			52			54
Total loans modified	$	178		$	60		$	238		$	279		$	3		$	282		$	307		$	473		$	780		$	1,300
% of total class of receivables	0.12		%	0.83		%	0.15		%	0.37		%	0.22		%	0.37		%	0.96		%	0.87		%	0.90		%	0.41		%

	Nine Months Ended September 30, 2024
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	472		$	113		$	585		—			—			—			—			$	9		$	9		$	594
Term extension	—			—			—			$	17		$	4		$	21		$	513		695			1,208			1,229
Principal balance reduction	—			—			—			19			—			19			—			15			15			34
Interest rate reduction and term extension	8			—			8			573			—			573			—			7			7			588
Other(1)	—			—			—			3			1			4			159			117			276			280
Total loans modified	$	480		$	113		$	593		$	612		$	5		$	617		$	672		$	843		$	1,515		$	2,725
% of total class of receivables	0.32		%	1.56		%	0.38		%	0.81		%	0.42		%	0.80		%	2.09		%	1.54		%	1.74		%	0.85		%

	Three Months Ended September 30, 2023
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	200		$	42		$	242		—			—			—			—			—			—			$	242
Term extension	—			—			—			$	14		$	2		$	16		$	128		$	147		$	275		291
Principal balance reduction	—			—			—			8			—			8			—			—			—			8
Interest rate reduction and term extension	7			—			7			248			—			248			—			26			26			281
Other(1)	—			—			—			2			7			9			—			56			56			65
Total loans modified	$	207		$	42		$	249		$	272		$	9		$	281		$	128		$	229		$	357		$	887
% of total class of receivables	0.15		%	0.65		%	0.17		%	0.36		%	0.62		%	0.36		%	0.36		%	0.41		%	0.39		%	0.28		%

98 Capital One Financial Corporation (COF)

	Nine Months Ended September 30, 2023
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	437		$	76		$	513		—			—			—			—			—			—			$	513
Term extension	—			—			—			$	76		$	3		$	79		$	327		$	347		$	674		753
Principal balance reduction	—			—			—			17			—			17			—			—			—			17
Principal balance reduction and term extension	—			—			—			—			—			—			—			15			15			15
Interest rate reduction and term extension	10			—			10			504			—			504			—			26			26			540
Other(1)	—			—			—			3			7			10			54			151			205			215
Total loans modified	$	447		$	76		$	523		$	600		$	10		$	610		$	381		$	539		$	920		$	2,053
% of total class of receivables	0.32		%	1.17		%	0.36		%	0.79		%	0.75		%	0.79		%	1.07		%	0.97		%	1.01		%	0.65		%

__________

(1)Primarily consists of modifications or combinations of modifications not categorized above, such as increases in committed exposure, forbearances and other types of modifications in Commercial Banking.

Table 4.7: Financial Effects of Financial Difficulty Modifications to Borrowers

	Three Months Ended September 30, 2024
	Credit Card		Consumer Banking		Commercial Banking
(Dollars in millions)	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	20.49%	27.01%	8.83%	—%	—%	2.14%
Payment delay duration (in months)	12	—	6	25	18	18
Principal balance reduction	—	—	—	—	—	—

	Nine Months Ended September 30, 2024
	Credit Card		Consumer Banking		Commercial Banking
	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	20.19%	26.76%	8.78%	3.48%	0.79%	1.90%
Payment delay duration (in months)	12	—	6	4	11	16
Principal balance reduction	—	—	—	—	—	$15

	Three Months Ended September 30, 2023
	Credit Card		Consumer Banking		Commercial Banking
	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	19.40%	27.41%	8.67%	—%	—%	0.25%
Payment delay duration (in months)	12	—	6	8	11	17
Principal balance reduction	—	—	—	—	—	—

	Nine Months Ended September 30, 2023
	Credit Card		Consumer Banking		Commercial Banking
	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	19.19%	27.08%	8.74%	2.00%	—%	0.25%
Payment delay duration (in months)	12	—	6	13	15	9
Principal balance reduction	—	—	$1	—	$20	$3

99 Capital One Financial Corporation (COF)

Performance of Financial Difficulty Modifications to Borrowers

We monitor loan performance trends, including FDMs, to assess and manage our exposure to credit risk. See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for additional information on how the allowance for modified loans is calculated for each portfolio segment. FDMs are accumulated and the performance of each loan that received an FDM is reported on a rolling twelve month basis.

For the interim reporting period ended September 30, 2024, the delinquency status as of this date is shown in the table below for FDMs entered into over the preceding twelve month period. For the interim reporting period ended September 30, 2023, the delinquency status as of this date is shown in the table below for FDMs entered into during the first nine months of 2023.

Table 4.8 Delinquency Status of Financial Difficulty Modifications to Borrowers(1)

	September 30, 2024
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	423	$	60	$	45	$	88	$	193	$	616
International card businesses	68		12		11		37		60		128
Total credit card	491		72		56		125		253		744
Consumer Banking:
Auto	560		112		71		28		211		771
Retail banking	10		0		0		0		0		10
Total consumer banking	570		112		71		28		211		781
Commercial Banking:
Commercial and multifamily real estate	646		0		0		28		28		674
Commercial and industrial	768		74		4		65		143		911
Total commercial banking	1,414		74		4		93		171		1,585
Total	$	2,475	$	258	$	131	$	246	$	635	$	3,110

100 Capital One Financial Corporation (COF)

	September 30, 2023
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	283	$	65	$	40	$	59	$	164	$	447
International card businesses	35		8		8		25		41		76
Total credit card	318		73		48		84		205		523
Consumer Banking:
Auto	457		79		46		18		143		600
Retail banking	10		0		0		0		0		10
Total consumer banking	467		79		46		18		143		610
Commercial Banking:
Commercial and multifamily real estate	318		0		0		63		63		381
Commercial and industrial	417		4		0		118		122		539
Total commercial banking	735		4		0		181		185		920
Total	$	1,520	$	156	$	94	$	283	$	533	$	2,053

__________

(1)Commitments to lend additional funds on FDMs totaled $263 million and $75 million as of September 30, 2024 and 2023, respectively.

Subsequent Defaults of Financial Difficulty Modifications to Borrowers

FDMs may subsequently enter default. A default occurs if a FDM is either 90 days or more delinquent, has been charged off, or has been reclassified from accrual to nonaccrual status. Loans that entered a modification program while in default are not considered to have subsequently defaulted for purposes of this disclosure. The allowance for any FDMs that have subsequently defaulted is measured using the same methodology as the allowance for loans held for investment. See “Part II—Item 8.—Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for additional information.

101 Capital One Financial Corporation (COF)

The following table presents FDMs that entered subsequent default for the three and nine months ended September 30, 2024 and 2023.

Table 4.9 Subsequent Defaults of Financial Difficulty Modifications to Borrowers

	Three Months Ended September 30, 2024
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Other Modifications		Total Loans
Credit Card:
Domestic credit card	$	52	$	0	$	0	$	0	$	52
International card businesses	21		0		0		0		21
Total credit card	73		0		0		0		73
Consumer Banking:
Auto	0		1		110		0		111
Retail banking	0		0		0		0		0
Total consumer banking	0		1		110		0		111
Commercial Banking:
Commercial and multifamily real estate	0		103		0		28		131
Commercial and industrial	0		0		0		0		0
Total commercial banking	0		103		0		28		131
Total	$	73	$	104	$	110	$	28	$	315

	Nine Months Ended September 30, 2024
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Other Modifications		Total Loans
Credit Card:
Domestic credit card	$	179	$	0	$	2	$	0	$	181
International card businesses	56		0		0		0		56
Total credit card	235		0		2		0		237
Consumer Banking:
Auto	0		6		329		0		335
Retail banking	0		1		0		0		1
Total consumer banking	0		7		329		0		336
Commercial Banking:
Commercial and multifamily real estate	0		103		0		28		131
Commercial and industrial	0		125		0		255		380
Total commercial banking	0		228		0		283		511
Total	$	235	$	235	$	331	$	283	$	1,084

102 Capital One Financial Corporation (COF)

	Three Months Ended September 30, 2023
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total Loans
Credit Card:
Domestic credit card	$	17	$	0	$	0	$	17
International card businesses	6		0		0		6
Total credit card	23		0		0		23
Consumer Banking:
Auto	0		7		77		84
Total consumer banking	0		7		77		84
Commercial Banking:
Commercial and multifamily real estate	0		46		0		46
Commercial and industrial	0		51		0		51
Total commercial banking	0		97		0		97
Total	$	23	$	104	$	77	$	204

	Nine Months Ended September 30, 2023
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total Loans
Credit Card:
Domestic credit card	$	39	$	0	$	0	$	39
International card businesses	9		0		0		9
Total credit card	48		0		0		48
Consumer Banking:
Auto	0		9		129		138
Total consumer banking	0		9		129		138
Commercial Banking:
Commercial and multifamily real estate	0		46		0		46
Commercial and industrial	0		51		0		51
Total commercial banking	0		97		0		97
Total	$	48	$	106	$	129	$	283

103 Capital One Financial Corporation (COF)

Loans Pledged

We pledged loan collateral of $7.2 billion and $7.4 billion to secure a portion of our FHLB borrowing capacity of $37.0 billion and $32.1 billion as of September 30, 2024 and December 31, 2023, respectively. We also pledged loan collateral of $82.4 billion and $78.3 billion to secure our Federal Reserve Discount Window borrowing capacity of $46.9 billion and $41.4 billion as of September 30, 2024 and December 31, 2023, respectively. In addition to loans pledged, we have securitized a portion of our credit card and auto loan portfolios. See “Note 6—Variable Interest Entities and Securitizations” for additional information.

Revolving Loans Converted to Term Loans

For the three and nine months ended September 30, 2024, we converted $267 million and $588 million of revolving loans to term loans, respectively, primarily in our domestic credit card and commercial banking loan portfolios. For the three and nine months ended September 30, 2023, we converted $101 million and $443 million of revolving loans to term loans, respectively, primarily in our domestic credit card and commercial banking loan portfolios.

104 Capital One Financial Corporation (COF)

NOTE 5—ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR UNFUNDED LENDING COMMITMENTS

Our allowance for credit losses represents management’s current estimate of expected credit losses over the contractual terms of our loans held for investment as of each balance sheet date. Expected recoveries of amounts previously charged off or expected to be charged off are recognized within the allowance. Significant judgment is applied in our estimation of lifetime credit losses. When developing an estimate of expected credit losses, we use both quantitative and qualitative methods in considering all available information relevant to assessing collectability. This may include internal information, external information, or a combination of both relating to past events, current conditions and reasonable and supportable forecasts. Our estimate of expected credit losses includes a reasonable and supportable forecast period of one year and then reverts over a one-year period to historical losses at each relevant loss component of the estimate. Management will consider and may qualitatively adjust for conditions, changes and trends in loan portfolios that may not be captured in modeled results. These adjustments are referred to as qualitative factors and represent management’s judgment of the imprecision and risks inherent in the processes and assumptions used in establishing the allowance for credit losses.

We have unfunded lending commitments in our Commercial Banking business that are not unconditionally cancellable by us and for which we estimate expected credit losses in establishing a reserve. This reserve is measured using the same measurement objectives as the allowance for loans held for investment. We build or release the reserve for unfunded lending commitments through the provision for credit losses in our consolidated statements of income, and the related reserve for unfunded lending commitments is included in other liabilities on our consolidated balance sheets.

See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for further discussion of the methodology and policies for determining our allowance for credit losses for each of our loan portfolio segments, as well as information on our reserve for unfunded lending commitments.

Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

The table below summarizes changes in the allowance for credit losses and reserve for unfunded lending commitments by portfolio segment for the three and nine months ended September 30, 2024 and 2023. Our allowance for credit losses increased by $1.2 billion to $16.5 billion as of September 30, 2024 from December 31, 2023.

Table 5.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

	Three Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of June 30, 2024	$	13,040	$	2,065	$	1,544	$	16,649
Charge-offs	(2,632)		(707)		(88)		(3,427)
Recoveries(1)	478		306		39		823
Net charge-offs	(2,154)		(401)		(49)		(2,604)
Provision for credit losses	2,084		351		35		2,470
Allowance release for credit losses	(70)		(50)		(14)		(134)
Other changes(2)	19		0		0		19
Balance as of September 30, 2024	12,989		2,015		1,530		16,534
Reserve for unfunded lending commitments:
Balance as of June 30, 2024	0		0		129		129
Provision for losses on unfunded lending commitments	0		0		13		13
Balance as of September 30, 2024	0		0		142		142
Combined allowance and reserve as of September 30, 2024	$	12,989	$	2,015	$	1,672	$	16,676

105 Capital One Financial Corporation (COF)

	Nine Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2023	$	11,709	$	2,042	$	1,545	$	15,296
Charge-offs	(7,892)		(2,003)		(166)		(10,061)
Recoveries(1)	1,273		869		55		2,197
Net charge-offs	(6,619)		(1,134)		(111)		(7,864)
Provision for credit losses	7,888		1,107		96		9,091
Allowance build (release) for credit losses(3)	1,269		(27)		(15)		1,227
Other changes(2)	11		0		0		11
Balance as of September 30, 2024	12,989		2,015		1,530		16,534
Reserve for unfunded lending commitments:
Balance as of December 31, 2023	0		0		158		158
Provision (benefit) for losses on unfunded lending commitments	0		0		(16)		(16)
Balance as of September 30, 2024	0		0		142		142
Combined allowance and reserve as of September 30, 2024	$	12,989	$	2,015	$	1,672	$	16,676

	Three Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of June 30, 2023	$	10,976	$	2,185	$	1,485	$	14,646
Charge-offs	(1,925)		(596)		(60)		(2,581)
Recoveries(1)	333		247		2		582
Net charge-offs	(1,592)		(349)		(58)		(1,999)
Provision for credit losses	1,953		213		155		2,321
Allowance build (release) for credit losses	361		(136)		97		322
Other changes(2)	(13)		0		0		(13)
Balance as of September 30, 2023	11,324		2,049		1,582		14,955
Reserve for unfunded lending commitments:
Balance as of June 30, 2023	0		0		197		197
Provision (benefit) for losses on unfunded lending commitments	0		0		(39)		(39)
Balance as of September 30, 2023	0		0		158		158
Combined allowance and reserve as of September 30, 2023	$	11,324	$	2,049	$	1,740	$	15,113

106 Capital One Financial Corporation (COF)

	Nine Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2022	$	9,545	$	2,237	$	1,458	$	13,240
Cumulative effects of accounting standards adoption(4)	(63)		0		0		(63)
Balance as of January 1, 2023	9,482		2,237		1,458		13,177
Charge-offs	(5,481)		(1,653)		(462)		(7,596)
Recoveries(1)	992		718		5		1,715
Net charge-offs	(4,489)		(935)		(457)		(5,881)
Provision for credit losses	6,298		747		581		7,626
Allowance build (release) for credit losses	1,809		(188)		124		1,745
Other changes(2)	33		0		0		33
Balance as of September 30, 2023	11,324		2,049		1,582		14,955
Reserve for unfunded lending commitments:
Balance as of December 31, 2022	0		0		218		218
Provision (benefit) for losses on unfunded lending commitments	0		0		(60)		(60)
Balance as of September 30, 2023	0		0		158		158
Combined allowance and reserve as of September 30, 2023	$	11,324	$	2,049	$	1,740	$	15,113

________

(1)The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications, repossession of collateral, the periodic sale of charged off loans as well as additional strategies, such as litigation.

(2)Primarily represents foreign currency translation adjustments in the three and nine months ended September 30, 2024 as well as the three months ended September 30, 2023. Primarily represents the initial allowance for purchased credit-deteriorated (“PCD”) loans in the nine months ended September 30, 2023. The initial allowance of PCD loans was $0 million and $32 million for the nine months ended September 30, 2024 and 2023, respectively.

(3)The termination of our Walmart program agreement, effective May 21, 2024, (“Walmart Program Termination”) resulted in an allowance for credit losses build in Domestic Card of $826 million in the second quarter of 2024.

(4)Impact from the adoption of ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures as of January 1, 2023.

We charge off loans when we determine that the loan is uncollectible. The amortized cost basis, excluding accrued interest, is charged off as a reduction to the allowance for credit losses in accordance with our accounting policies. For more information, see “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K.

Expected recoveries of amounts previously charged off or expected to be charged off are recognized within the allowance, with a corresponding reduction to our provision for credit losses.

107 Capital One Financial Corporation (COF)

The table below presents gross charge-offs for loans held for investment by vintage year during the nine months ended September 30, 2024.

Table 5.2: Gross Charge-Offs by Vintage Year

	Nine Months Ended September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Credit Card
Domestic credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		$	7,425	$	84	$	7,509
International card business	N/A		N/A		N/A		N/A		N/A		N/A		N/A		373		10		383
Total credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		7,798		94		7,892
Consumer Banking
Auto	$	70	$	474	$	630	$	457	$	184	$	126	$	1,941	0		0		1,941
Retail banking	1		0		0		0		0		3		4		57		1		62
Total consumer banking	71		474		630		457		184		129		1,945		57		1		2,003
Commercial Banking
Commercial and multifamily real estate	0		0		5		31		0		49		85		0		0		85
Commercial and industrial	0		0		46		5		16		4		71		10		0		81
Total commercial banking	0		0		51		36		16		53		156		10		0		166
Total	$	71	$	474	$	681	$	493	$	200	$	182	$	2,101	$	7,865	$	95	$	10,061

108 Capital One Financial Corporation (COF)

Credit Card Partnership Loss Sharing Arrangements

We have certain credit card partnership agreements that are presented within our consolidated financial statements on a net basis, in which our partner agrees to share a portion of the credit losses on the underlying loan portfolio. The expected reimbursements from these partners are netted against our allowance for credit losses. Our methodology for estimating reimbursements is consistent with the methodology we use to estimate the allowance for credit losses on our credit card loan receivables. These expected reimbursements result in reductions in net charge-offs and the provision for credit losses. See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for further discussion of our credit card partnership agreements.

The table below summarizes the changes in the estimated reimbursements from these partners for the three and nine months ended September 30, 2024 and 2023.

Table 5.3: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts

	Three Months Ended September 30,
(Dollars in millions)	2024		2023
Estimated reimbursements from partners, beginning of period	$	1,210	$	1,908
Amounts due from partners for charged off loans	(157)		(249)
Change in estimated partner reimbursements that decreased provision for credit losses	102		319
Estimated reimbursements from partners, end of period	$	1,155	$	1,978

	Nine Months Ended September 30,
(Dollars in millions)	2024		2023
Estimated reimbursements from partners, beginning of period	$	2,014	$	1,558
Amounts due from partners for charged off loans	(734)		(681)
Change in estimated partner reimbursements that (increased) decreased provision for credit losses	(125)		1,101
Estimated reimbursements from partners, end of period	$	1,155	$	1,978

109 Capital One Financial Corporation (COF)

NOTE 6—VARIABLE INTEREST ENTITIES AND SECURITIZATIONS

In the normal course of business, we enter into various types of transactions with entities that are considered to be variable interest entities (“VIEs”). Our primary involvement with VIEs is related to our securitization transactions in which we transfer assets to securitization trusts. We primarily securitize credit card and auto loans, which provide a source of funding for us and enable us to transfer a certain portion of the economic risk of the loans or related debt securities to third parties.

The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. The majority of the VIEs in which we are involved have been consolidated in our financial statements.

Summary of Consolidated and Unconsolidated VIEs

The assets of our consolidated VIEs primarily consist of cash, loan receivables and the related allowance for credit losses, which we report on our consolidated balance sheets under restricted cash for securitization investors, loans held in consolidated trusts and allowance for credit losses, respectively. The assets of a particular VIE are the primary source of funds to settle its obligations. Creditors of these VIEs typically do not have recourse to our general credit. Liabilities primarily consist of debt securities issued by the VIEs, which we report under securitized debt obligations on our consolidated balance sheets. For unconsolidated VIEs, we present the carrying amount of assets and liabilities reflected on our consolidated balance sheets and our maximum exposure to loss. Our maximum exposure to loss is estimated based on the unlikely event that all of the assets in the VIEs become worthless and we are required to meet the maximum amount of any remaining funding obligations.

The tables below present a summary of VIEs in which we had continuing involvement or held a significant variable interest, aggregated based on VIEs with similar characteristics as of September 30, 2024 and December 31, 2023. We separately present information for consolidated and unconsolidated VIEs.

Table 6.1: Carrying Amount of Consolidated and Unconsolidated VIEs

	September 30, 2024
	Consolidated				Unconsolidated
(Dollars in millions)	Carrying Amount of Assets		Carrying Amount of Liabilities		Carrying Amount of Assets		Carrying Amount of Liabilities		Maximum Exposure to Loss
Securitization-Related VIEs:(1)
Credit card loan securitizations(2)	$	24,000	$	13,495	$	0	$	0	$	0
Auto loan securitizations	3,473		2,788		0		0		0
Total securitization-related VIEs	27,473		16,283		0		0		0
Other VIEs:(3)
Affordable housing entities	354		75		5,469		1,890		5,469
Entities that provide capital to low-income and rural communities	2,639		10		0		0		0
Other(4)	0		0		385		8		385
Total other VIEs	2,993		85		5,854		1,898		5,854
Total VIEs	$	30,466	$	16,368	$	5,854	$	1,898	$	5,854

110 Capital One Financial Corporation (COF)

	December 31, 2023
	Consolidated				Unconsolidated
(Dollars in millions)	Carrying Amount of Assets		Carrying Amount of Liabilities		Carrying Amount of Assets		Carrying Amount of Liabilities		Maximum Exposure to Loss
Securitization-Related VIEs:(1)
Credit card loan securitizations(2)	$	25,474	$	14,692	$	0	$	0	$	0
Auto loan securitizations	5,019		4,021		0		0		0
Total securitization-related VIEs	30,493		18,713		0		0		0
Other VIEs:(3)
Affordable housing entities	297		23		5,726		2,085		5,726
Entities that provide capital to low-income and rural communities	2,498		10		0		0		0
Other(4)	0		0		449		0		449
Total other VIEs	2,795		33		6,175		2,085		6,175
Total VIEs	$	33,288	$	18,746	$	6,175	$	2,085	$	6,175

__________

(1)Excludes insignificant VIEs from previously exited businesses.

(2)Represents the carrying amount of assets and liabilities of the VIE, which includes the seller’s interest and repurchased notes held by other related parties.

(3)In certain investment structures, we consolidate a VIE which holds as its primary asset an investment in an unconsolidated VIE. In these instances, we disclose the carrying amount of assets and liabilities on our consolidated balance sheets as unconsolidated VIEs to avoid duplicating our exposure, as the unconsolidated VIEs are generally the operating entities generating the exposure. The carrying amount of assets and liabilities included in the unconsolidated VIE columns above related to these investment structures were $2.6 billion of assets and $999 million of liabilities as of September 30, 2024, and $2.6 billion of assets and $989 million of liabilities as of December 31, 2023.

(4)Primarily consists of variable interests in companies that promote renewable energy sources and other equity method investments.

Securitization-Related VIEs

In a securitization transaction, assets are transferred to a trust, which generally meets the definition of a VIE. We engage in securitization activities as an issuer and an investor. Our primary securitization issuance activity includes credit card and auto securitizations, conducted through securitization trusts which we consolidate. Our continuing involvement in these securitization transactions mainly consists of acting as the primary servicer and holding certain retained interests.

In our multifamily agency business, we originate multifamily commercial real estate loans and transfer them to government-sponsored enterprises (“GSEs”) who may, in turn, securitize them. We retain the related mortgage servicing rights (“MSRs”) and service the transferred loans pursuant to the guidelines set forth by the GSEs. As an investor, we hold primarily RMBS, CMBS, and ABS in our investment securities portfolio, which represent variable interests in the respective securitization trusts from which those securities were issued. We do not consolidate the securitization trusts employed in these transactions as we do not have the power to direct the activities that most significantly impact the economic performance of these securitization trusts. We exclude these VIEs from the tables within this note because we do not consider our continuing involvement with these VIEs to be significant as we either solely invest in securities issued by the VIE and were not involved in the design of the VIE or no transfers have occurred between the VIE and ourselves. Our maximum exposure to loss as a result of our involvement with these VIEs is the carrying value of the MSRs and investment securities on our consolidated balance sheets as well as our contractual obligations under loss sharing arrangements. See “Note 14—Commitments, Contingencies, Guarantees and Others” for information about the loss sharing agreements, “Note 7—Goodwill and Other Intangible Assets” for information related to our MSRs associated with these securitizations and “Note 3—Investment Securities” for more information on the securities held in our investment securities portfolio. In addition, where we have certain lending arrangements in the normal course of business with entities that could be VIEs, we have excluded these VIEs from the tables presented in this note. See “Note 4—Loans” for additional information regarding our lending arrangements in the normal course of business.

111 Capital One Financial Corporation (COF)

The table below presents our continuing involvement in certain securitization-related VIEs as of September 30, 2024 and December 31, 2023.

Table 6.2: Continuing Involvement in Securitization-Related VIEs

(Dollars in millions)	Credit Card		Auto
September 30, 2024:
Securities held by third-party investors	$	13,098	$	2,783
Receivables in the trusts	24,867		3,315
Cash balance of spread or reserve accounts	0		19
Retained interests	Yes		Yes
Servicing retained	Yes		Yes
December 31, 2023:
Securities held by third-party investors	$	14,029	$	4,014
Receivables in the trusts	26,404		4,839
Cash balance of spread or reserve accounts	0		19
Retained interests	Yes		Yes
Servicing retained	Yes		Yes

Credit Card Securitizations

We securitize a portion of our credit card loans which provides a source of funding for us. Credit card securitizations involve the transfer of credit card receivables to securitization trusts. These trusts then issue debt securities collateralized by the transferred receivables to third-party investors. We hold certain retained interests in our credit card securitizations and continue to service the receivables in these trusts. We consolidate these trusts because we are deemed to be the primary beneficiary as we have the power to direct the activities that most significantly impact the economic performance of the trusts, and the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts.

Auto Securitizations

Similar to our credit card securitizations, we securitize a portion of our auto loans which provides a source of funding for us. Auto securitizations involve the transfer of auto loans to securitization trusts. These trusts then issue debt securities collateralized by the transferred loans to third-party investors. We hold certain retained interests and continue to service the loans in these trusts. We consolidate these trusts because we are deemed to be the primary beneficiary as we have the power to direct the activities that most significantly impact the economic performance of the trusts, and the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts.

Other VIEs

Affordable Housing Entities

As part of our community reinvestment initiatives, we invest in private investment funds that make equity investments in multifamily affordable housing properties, a majority of which are VIEs. We receive affordable housing tax credits for these investments. The activities of these entities are financed with a combination of invested equity capital and debt. We account for our investments in qualified affordable housing projects using the proportional amortization method, where costs of the investment are amortized over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of income tax expense attributable to continuing operations. For the nine months ended September 30, 2024 and 2023, we recognized amortization of $527 million and $522 million, respectively, and tax credits of $671 million and $652 million, respectively, associated with these investments within income tax provision. The carrying value of our equity investments in these qualified affordable housing projects was $5.3 billion and $5.5 billion as of September 30, 2024 and December 31, 2023, respectively. We are periodically required to provide additional financial or other support during the period of the investments. Our liability for these unfunded commitments was $2.1 billion and $2.3 billion as of September 30, 2024 and December 31, 2023, respectively, and is largely expected to be paid from 2024 to 2027.

112 Capital One Financial Corporation (COF)

For those investment funds considered to be VIEs, we are not required to consolidate them if we do not have the power to direct the activities that most significantly impact the economic performance of those entities. We record our interests in these unconsolidated VIEs in loans held for investment, other assets and other liabilities on our consolidated balance sheets. Our maximum exposure to these entities is limited to our variable interests in the entities which consisted of assets of approximately $5.5 billion and $5.7 billion as of September 30, 2024 and December 31, 2023, respectively. The creditors of the VIEs have no recourse to our general credit and we do not provide additional financial or other support other than during the period that we are contractually required to provide it. The total assets of the unconsolidated VIE investment funds were approximately $18.7 billion and $18.6 billion as of September 30, 2024 and December 31, 2023, respectively.

Entities that Provide Capital to Low-Income and Rural Communities

We hold variable interests in entities (“Investor Entities”) that invest in community development entities (“CDEs”) that provide debt financing to businesses and non-profit entities in low-income and rural communities. Variable interests in the CDEs held by the consolidated Investor Entities are also our variable interests. The activities of the Investor Entities are financed with a combination of invested equity capital and debt. The activities of the CDEs are financed solely with invested equity capital. We receive federal and state tax credits for these investments. We consolidate the VIEs in which we have the power to direct the activities that most significantly impact the VIE’s economic performance and where we have the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIE. We consolidate other investments and CDEs that are not considered to be VIEs, but where we hold a controlling financial interest. The assets of the VIEs that we consolidated, which totaled approximately $2.6 billion and $2.5 billion as of September 30, 2024 and December 31, 2023, respectively, are reflected on our consolidated balance sheets in cash, loans held for investment, and other assets. The liabilities are reflected in other liabilities. The creditors of the VIEs have no recourse to our general credit. We have not provided additional financial or other support other than during the period that we are contractually required to provide it.

Other

We hold variable interests in other VIEs, including companies that promote renewable energy sources and other equity method investments. We are not required to consolidate these VIEs because we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to these VIEs is limited to the investments on our consolidated balance sheets of $385 million and $449 million as of September 30, 2024 and December 31, 2023, respectively. The creditors of the other VIEs have no recourse to our general credit. We have not provided additional financial or other support other than during the period that we are contractually required to provide it.

113 Capital One Financial Corporation (COF)

NOTE 7—GOODWILL AND OTHER INTANGIBLE ASSETS

The table below presents our goodwill, other intangible assets and MSRs as of September 30, 2024 and December 31, 2023. Goodwill is presented separately, while other intangible assets and MSRs are included in other assets on our consolidated balance sheets.

Table 7.1: Components of Goodwill, Other Intangible Assets and MSRs

	September 30, 2024
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount
Goodwill	$	15,083	N/A		$	15,083
Other intangible assets:
Purchased credit card relationship (“PCCR”) intangibles	369		$	(147)	222
Other(1)	135		(104)		31
Total other intangible assets	504		(251)		253
Total goodwill and other intangible assets	$	15,587	$	(251)	$	15,336
Commercial MSRs(2)	$	658	$	(301)	$	357
	December 31, 2023
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount
Goodwill	$	15,065	N/A		$	15,065
Other intangible assets:
Purchased credit card relationship (“PCCR”) intangibles	369		$	(96)	273
Other(1)	171		(134)		37
Total other intangible assets	540		(230)		310
Total goodwill and other intangible assets	$	15,605	$	(230)	$	15,375
Commercial MSRs(2)	$	653	$	(263)	$	390

__________

(1)Primarily consists of intangibles for sponsorship, customer and merchant relationships, domain names and licenses.

(2)Commercial MSRs are accounted for under the amortization method on our consolidated balance sheets.

Amortization expense for amortizable intangible assets, which is presented separately in our consolidated statements of income, totaled $20 million and $58 million for the three and nine months ended September 30, 2024, respectively, and $24 million and $60 million for the three and nine months ended September 30, 2023, respectively.

Goodwill

The following table presents changes in the carrying amount of goodwill by each of our business segments as of September 30, 2024 and December 31, 2023.

Table 7.2: Goodwill by Business Segments

(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Balance as of December 31, 2023	$	5,366	$	4,645	$	5,054	$	15,065
Other adjustments(1)	18		0		0		18
Balance as of September 30, 2024	$	5,384	$	4,645	$	5,054	$	15,083

__________

(1)Primarily represents foreign currency translation adjustments.

114 Capital One Financial Corporation (COF)

NOTE 8—DEPOSITS AND BORROWINGS

Our deposits, which include checking accounts, money market deposits, negotiable order of withdrawals, savings deposits and time deposits, represent our largest source of funding for our assets and operations. We also use a variety of other funding sources including short-term borrowings, senior and subordinated notes, securitized debt obligations and other borrowings. Securitized debt obligations are presented separately on our consolidated balance sheets, as they represent obligations of consolidated securitization trusts, while federal funds purchased and securities loaned or sold under agreements to repurchase, senior and subordinated notes and other borrowings, including FHLB advances, are included in other debt on our consolidated balance sheets.

Our total short-term borrowings generally consist of federal funds purchased, securities loaned or sold under agreements to repurchase and FHLB advances. Our long-term debt consists of borrowings with an original contractual maturity of greater than one year. The following tables summarize the components of our deposits, short-term borrowings and long-term debt as of September 30, 2024 and December 31, 2023. The carrying value presented below for these borrowings includes any unamortized debt premiums and discounts, net of debt issuance costs and fair value hedge accounting adjustments.

Table 8.1: Components of Deposits, Short-Term Borrowings and Long-Term Debt

(Dollars in millions)	September 30, 2024		December 31, 2023
Deposits:
Non-interest-bearing deposits	$	26,378	$	28,024
Interest-bearing deposits(1)	327,253		320,389
Total deposits	$	353,631	$	348,413
Short-term borrowings:
Federal funds purchased and securities loaned or sold under agreements to repurchase	$	520	$	538
Total short-term borrowings	$	520	$	538

	September 30, 2024					December 31, 2023
(Dollars in millions)	Maturity Dates	Stated Interest Rates	Weighted-Average Interest Rate	Carrying Value		Carrying Value
Long-term debt:
Securitized debt obligations	2024-2028	0.77% - 6.11%	3.13%	$	15,881	$	18,043
Senior and subordinated notes:
Fixed unsecured senior debt(2)	2024-2035	1.65 - 7.62	4.76	29,102		27,168
Floating unsecured senior debt	—	—	—	0		349
Total unsecured senior debt			4.76	29,102		27,517
Fixed unsecured subordinated debt	2025-2032	2.36 - 4.20	3.57	3,809		3,731
Total senior and subordinated notes				32,911		31,248
Other long-term borrowings	2024-2031	1.20 - 9.91	6.59	24		27
Total long-term debt				$	48,816	$	49,318
Total short-term borrowings and long-term debt				$	49,336	$	49,856

__________

(1)Some customers have time deposits in excess of the federal deposit insurance limit, making a portion of the deposit uninsured. As of September 30, 2024, the total time deposit amount with some portion in excess of the insured amount was $14.7 billion and the portion of total time deposits estimated to be uninsured was $9.7 billion. As of December 31, 2023, the total time deposit amount with some portion in excess of the insured amount was $15.8 billion and the portion of total time deposits estimated to be uninsured was $9.0 billion.

(2)Includes $506 million and $1.3 billion of Euro (“EUR”) denominated unsecured notes as of September 30, 2024 and December 31, 2023, respectively.

115 Capital One Financial Corporation (COF)

NOTE 9—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Use of Derivatives and Accounting for Derivatives

We regularly enter into derivative transactions to support our overall risk management activities. Our primary market risks stem from the impact on our earnings and economic value of equity due to changes in interest rates and, to a lesser extent, changes in foreign exchange rates. We manage our interest rate sensitivity by employing several techniques, which include changing the duration and re-pricing characteristics of various assets and liabilities by using interest rate derivatives. We also use foreign currency derivatives to limit our earnings and capital exposures to foreign exchange risk by hedging certain exposures denominated in foreign currencies. We primarily use interest rate and foreign currency swaps to perform these hedging activities, but we may also use a variety of other derivative instruments, including caps, floors, options, futures and forward contracts, to manage our interest rate and foreign exchange risks. We designate these risk management derivatives as either qualifying accounting hedges or free-standing derivatives. Qualifying accounting hedges are further designated as fair value hedges, cash flow hedges or net investment hedges. Free-standing derivatives are economic hedges that do not qualify for hedge accounting.

We also offer interest rate, commodity, foreign currency derivatives and other contracts as an accommodation to our customers within our Commercial Banking business. We enter into these derivatives with our customers primarily to help them manage their interest rate risks, hedge their energy and other commodities exposures, and manage foreign currency fluctuations. We offset the substantial majority of the market risk exposure of our customer accommodation derivatives through derivative transactions with other counterparties.

See below for additional information on our use of derivatives and how we account for them:

•Fair Value Hedges: We designate derivatives as fair value hedges when they are used to manage our exposure to changes in the fair value of certain financial assets and liabilities, which fluctuate in value as a result of movements in interest rates. Changes in the fair value of derivatives designated as fair value hedges are presented in the same line item in our consolidated statements of income as the earnings effect of the hedged items. We enter into receive-fixed, pay-float interest rate swaps to hedge changes in the fair value of outstanding fixed rate debt and deposits due to fluctuations in market interest rates. We also enter into pay-fixed, receive-float interest rate swaps to hedge changes in the fair value of fixed rate investment securities.

•Cash Flow Hedges: We designate derivatives as cash flow hedges when they are used to manage our exposure to variability in cash flows related to forecasted transactions. Changes in the fair value of derivatives designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (“AOCI”). Those amounts are reclassified into earnings in the same period during which the hedged forecasted transactions impact earnings and presented in the same line item in our consolidated statements of income as the earnings effect of the hedged items. We enter into receive-fixed, pay-float interest rate swaps and interest rate floors to modify the interest rate characteristics of designated credit card and commercial loans from floating to fixed in order to reduce the impact of changes in forecasted future cash flows due to fluctuations in market interest rates. We also enter into foreign currency forward contracts to hedge our exposure to variability in cash flows related to intercompany borrowings denominated in foreign currencies.

•Net Investment Hedges: We use net investment hedges to manage the foreign currency exposure related to our net investments in foreign operations that have functional currencies other than the U.S. dollar. Changes in the fair value of net investment hedges are recorded in the translation adjustment component of AOCI, offsetting the translation gain or loss from those foreign operations. We execute net investment hedges using foreign currency forward contracts to hedge the translation exposure of the net investment in our foreign operations under the forward method.

•Free-Standing Derivatives: Our free-standing derivatives primarily consist of our customer accommodation derivatives and other economic hedges. The customer accommodation derivatives and the related offsetting contracts are mainly interest rate, commodity and foreign currency contracts. The other free-standing derivatives are primarily used to economically hedge the risk of changes in the fair value of our commercial mortgage loan origination and purchase commitments as well as other interests held. Changes in the fair value of free-standing derivatives are recorded in earnings as a component of other non-interest income.

116 Capital One Financial Corporation (COF)

Derivatives Counterparty Credit Risk

Counterparty Types

Derivative instruments contain an element of credit risk that stems from the potential failure of a counterparty to perform according to the terms of the contract, including making payments due upon maturity of certain derivative instruments. We execute our derivative contracts primarily in “over-the-counter” (“OTC”) markets. We also execute interest rate and commodity futures in the exchange-traded derivative markets. Our OTC derivatives consist of both trades cleared through central counterparty clearinghouses (“CCPs”) and uncleared bilateral contracts. The Chicago Mercantile Exchange (“CME”), the Intercontinental Exchange (“ICE”) and the LCH Group (“LCH”) are our CCPs for our centrally cleared contracts. In our uncleared bilateral contracts, we enter into agreements directly with our derivative counterparties.

Counterparty Credit Risk Management

We manage the counterparty credit risk associated with derivative instruments by entering into legally enforceable master netting agreements, where applicable, and exchanging collateral with our counterparties, typically in the form of cash or high-quality liquid securities. We exchange collateral in two primary forms: variation margin, which accounts for changes in market value due to daily market movements, and initial margin, which offsets the potential future exposure of a derivative. We exchange variation margin and initial margin on bilateral derivatives in scope for uncleared margin rules.

The amount of collateral exchanged for variation margin is dependent upon the fair value of the derivative instruments as well as the fair value of the pledged collateral and will vary over time as market variables change. The amount of the initial margin exchanged is dependent upon 1) the calculation of initial margin exposure, as prescribed by 1(a) the U.S. prudential regulators’ margin rules for uncleared derivatives (“PR Rules”) or 1(b) the CCPs for cleared derivatives and 2) the fair value of the pledged collateral; it will vary over time as market variables change. When valuing collateral, an estimate of the variation in price and liquidity over time is subtracted in the form of a “haircut” to discount the value of the collateral pledged. Our exposure to derivative counterparty credit risk, at any point in time, is equal to the amount reported as a derivative asset on our balance sheet. The fair value of our derivatives is adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated collateral received or pledged. See Table 9.3 for our net exposure associated with derivatives.

The terms under which we collateralize our exposures differ between cleared exposures and uncleared bilateral exposures.

•CCPs: We clear eligible OTC derivatives with CCPs as part of our regulatory requirements. We also clear exchange-traded instruments, like futures, with CCPs. Futures commission merchants (“FCMs”) serve as the intermediary between CCPs and us. CCPs require that we post initial and variation margin through our FCMs to mitigate the risk of non-payment or default. Initial margin is required by CCPs as collateral against potential losses on our exchange-traded and cleared derivative contracts and variation margin is exchanged on a daily basis to account for mark-to-market changes in those derivative contracts. For CME, ICE and LCH-cleared OTC derivatives, variation margin cash payments are required to be characterized as settlements. Our FCM agreements governing these derivative transactions include provisions that may require us to post additional collateral under certain circumstances.

•Bilateral Counterparties: We enter into master netting agreements and collateral agreements with bilateral derivative counterparties, where applicable, to mitigate the risk of default. These bilateral agreements typically provide the right to offset exposure with the same counterparty and require the party in a net liability position to post collateral. Agreements with certain bilateral counterparties require both parties to maintain collateral in the event the fair values of uncleared derivatives exceed established exposure thresholds. Certain of these bilateral agreements include provisions requiring that our debt maintain a credit rating of investment grade or above by each of the major credit rating agencies. In the event of a downgrade of our debt credit rating below investment grade, some of our counterparties would have the right to terminate their derivative contract and close out existing positions.

117 Capital One Financial Corporation (COF)

Credit Risk Valuation Adjustments

We record counterparty credit valuation adjustments (“CVAs”) on our derivative assets to reflect the credit quality of our counterparties. We consider collateral and legally enforceable master netting agreements that mitigate our credit exposure to each counterparty in determining CVAs, which may be adjusted due to changes in the fair values of the derivative contracts, collateral, and creditworthiness of the counterparty. We also record debit valuation adjustments (“DVAs”) to adjust the fair values of our derivative liabilities to reflect the impact of our own credit quality.

Balance Sheet Presentation

The following table summarizes the notional amounts and fair values of our derivative instruments as of September 30, 2024 and December 31, 2023, which are segregated by derivatives that are designated as accounting hedges and those that are not, and are further segregated by type of contract within those two categories. The total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated cash collateral received or pledged. Derivative assets and liabilities are included in other assets and other liabilities, respectively, on our consolidated balance sheets, and their related gains or losses are included in operating activities as changes in other assets and other liabilities in the consolidated statements of cash flows.

Table 9.1: Derivative Assets and Liabilities at Fair Value

	September 30, 2024						December 31, 2023
	Notional or Contractual Amount		Derivative(1)				Notional or Contractual Amount		Derivative(1)
(Dollars in millions)			Assets		Liabilities				Assets		Liabilities
Derivatives designated as accounting hedges:
Interest rate contracts:
Fair value hedges	$	64,284	$	8	$	82	$	68,987	$	18	$	26
Cash flow hedges	93,050		307		80		70,350		216		23
Total interest rate contracts	157,334		315		162		139,337		234		49
Foreign exchange contracts:
Fair value hedges	557		0		66		1,380		0		113
Cash flow hedges	2,645		0		59		2,488		0		66
Net investment hedges	5,100		2		174		4,870		1		89
Total foreign exchange contracts	8,302		2		299		8,738		1		268
Total derivatives designated as accounting hedges	165,636		317		461		148,075		235		317
Derivatives not designated as accounting hedges:
Customer accommodation:
Interest rate contracts	103,279		844		929		103,489		1,188		1,382
Commodity contracts	35,647		1,177		1,182		33,495		1,161		1,147
Foreign exchange and other contracts	5,580		31		39		5,153		50		47
Total customer accommodation	144,506		2,052		2,150		142,137		2,399		2,576
Other interest rate exposures(2)	921		19		14		872		21		31
Other contracts	3,011		20		32		2,955		20		8
Total derivatives not designated as accounting hedges	148,438		2,091		2,196		145,964		2,440		2,615
Total derivatives	$	314,074	$	2,408	$	2,657	$	294,039	$	2,675	$	2,932
Less: netting adjustment(3)			(725)		(622)				(1,005)		(597)
Total derivative assets/liabilities			$	1,683	$	2,035			$	1,670	$	2,335

__________

(1)Does not reflect $3 million and $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of September 30, 2024 and December 31, 2023, respectively. This net valuation allowance is included as part of other assets and other liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income.

(2)Other interest rate exposures include commercial mortgage-related derivatives and interest rate swaps.

118 Capital One Financial Corporation (COF)

(3)Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty.

The following table summarizes the carrying value of our hedged assets and liabilities in fair value hedges and the associated cumulative basis adjustments included in those carrying values, excluding basis adjustments related to foreign currency risk, as of September 30, 2024 and December 31, 2023.

Table 9.2: Hedged Items in Fair Value Hedging Relationships

	September 30, 2024						December 31, 2023
	Carrying Amount Assets/(Liabilities)		Cumulative Amount of Basis Adjustments Included in the Carrying Amount				Carrying Amount Assets/(Liabilities)		Cumulative Amount of Basis Adjustments Included in the Carrying Amount
(Dollars in millions)			Total Assets/(Liabilities)		Discontinued-Hedging Relationships				Total Assets/(Liabilities)		Discontinued-Hedging Relationships
Line item on our consolidated balance sheets in which the hedged item is included:
Investment securities available for sale(1)(2)	$	6,191	$	78	$	87	$	6,108	$	(8)	$	126
Interest-bearing deposits	(11,292)		64		0		(17,374)		277		0
Securitized debt obligations	(13,042)		242		0		(13,375)		503		0
Senior and subordinated notes	(31,410)		385		(258)		(30,899)		971		(372)

__________

(1)These amounts include the amortized cost basis of our investment securities designated in hedging relationships for which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. The amortized cost basis of this portfolio was $1.4 billion and $2.2 billion as of September 30, 2024 and December 31, 2023, respectively. The amount of the designated hedged items was $1.0 billion and $1.5 billion as of September 30, 2024 and December 31, 2023, respectively. The cumulative basis adjustments associated with these hedges was $32 million and $33 million as of September 30, 2024 and December 31, 2023, respectively.

(2)Carrying value represents amortized cost.

Balance Sheet Offsetting of Financial Assets and Liabilities

Derivative contracts and repurchase agreements that we execute bilaterally in the OTC market are generally governed by enforceable master netting agreements where we generally have the right to offset exposure with the same counterparty. Either counterparty can generally request to net settle all contracts through a single payment upon default on, or termination of, any one contract. We elect to offset the derivative assets and liabilities under master netting agreements for balance sheet presentation where a right of setoff exists. For derivative contracts entered into under master netting agreements for which we have not been able to confirm the enforceability of the setoff rights, or those not subject to master netting agreements, we do not offset our derivative positions for balance sheet presentation.

The following table presents the gross and net fair values of our derivative assets, derivative liabilities, resale and repurchase agreements and the related offsetting amounts permitted under U.S. GAAP as of September 30, 2024 and December 31, 2023. The table also includes cash and non-cash collateral received or pledged in accordance with such arrangements. The amount of collateral presented, however, is limited to the amount of the related net derivative fair values or outstanding balances; therefore, instances of over-collateralization are excluded.

119 Capital One Financial Corporation (COF)

Table 9.3: Offsetting of Financial Assets and Financial Liabilities

	Gross Amounts		Gross Amounts Offset in the Balance Sheet				Net Amounts as Recognized		Securities Collateral Held Under Master Netting Agreements		Net Exposure
(Dollars in millions)			Financial Instruments		Cash Collateral Received
As of September 30, 2024
Derivative assets(1)	$	2,408	$	(474)	$	(251)	$	1,683	$	(11)	$	1,672
As of December 31, 2023
Derivative assets(1)	2,675		(433)		(572)		1,670		(22)		1,648

	Gross Amounts		Gross Amounts Offset in the Balance Sheet				Net Amounts as Recognized		Securities Collateral Pledged Under Master Netting Agreements		Net Exposure
(Dollars in millions)			Financial Instruments		Cash Collateral Pledged
As of September 30, 2024
Derivative liabilities(1)	$	2,657	$	(474)	$	(148)	$	2,035	$	(27)	$	2,008
Repurchase agreements(2)	520		0		0		520		(520)		0
As of December 31, 2023
Derivative liabilities(1)	2,932		(433)		(164)		2,335		(13)		2,322
Repurchase agreements(2)	538		0		0		538		(538)		0

__________

(1)We received cash collateral from derivative counterparties totaling $428 million and $858 million as of September 30, 2024 and December 31, 2023, respectively. We also received securities from derivative counterparties with a fair value of approximately $11 million and $16 million as of September 30, 2024 and December 31, 2023, respectively, which we have the ability to re-pledge. We posted $1.7 billion of cash collateral as of both September 30, 2024 and December 31, 2023.

(2)Under our customer repurchase agreements, which mature the next business day, we pledged collateral with a fair value of $531 million and $549 million as of September 30, 2024 and December 31, 2023, respectively, primarily consisting of agency RMBS securities.

120 Capital One Financial Corporation (COF)

Income Statement and AOCI Presentation

Fair Value and Cash Flow Hedges

The net gains (losses) recognized in our consolidated statements of income related to derivatives in fair value and cash flow hedging relationships are presented below for the three and nine months ended September 30, 2024 and 2023.

Table 9.4: Effects of Fair Value and Cash Flow Hedge Accounting

	Three Months Ended September 30, 2024
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	733	$	10,547	$	580	$	(2,945)	$	(234)	$	(596)	$	244
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	39	$	0	$	0	$	(73)	$	(102)	$	(248)	$	0
Gains (losses) recognized on derivatives	(144)		0		0		247		210		1,010		21
Gains (losses) recognized on hedged items(1)	128		0		0		(246)		(210)		(973)		(21)
Excluded component of fair value hedges(2)	0		0		0		0		0		0		0
Net income (expense) recognized on fair value hedges	$	23	$	0	$	0	$	(72)	$	(102)	$	(211)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income	$	0	$	(314)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		2		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(314)	$	2	$	0	$	0	$	0	$	1

121 Capital One Financial Corporation (COF)

	Nine Months Ended September 30, 2024
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	2,120	$	30,460	$	1,737	$	(8,631)	$	(753)	$	(1,793)	$	803
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	125	$	0	$	0	$	(277)	$	(339)	$	(771)	$	0
Gains (losses) recognized on derivatives	(137)		0		0		213		261		742		(18)
Gains (losses) recognized on hedged items(1)	86		0		0		(213)		(261)		(627)		18
Excluded component of fair value hedges(2)	0		0		0		0		0		7		0
Net income (expense) recognized on fair value hedges	$	74	$	0	$	0	$	(277)	$	(339)	$	(649)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income	$	0	$	(936)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		7		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(936)	$	7	$	0	$	0	$	0	$	1

122 Capital One Financial Corporation (COF)

	Three Months Ended September 30, 2023
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	627	$	9,696	$	550	$	(2,611)	$	(249)	$	(579)	$	256
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	42	$	0	$	0	$	(104)	$	(112)	$	(275)	$	0
Gains (losses) recognized on derivatives	(15)		0		0		(38)		4		(273)		(42)
Gains (losses) recognized on hedged items(1)	(6)		0		0		38		(4)		313		42
Excluded component of fair value hedges(2)	0		0		0		0		0		(1)		0
Net income (expense) recognized on fair value hedges	$	21	$	0	$	0	$	(104)	$	(112)	$	(236)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income	$	0	$	(320)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		3		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(320)	$	3	$	0	$	0	$	0	$	1

123 Capital One Financial Corporation (COF)

	Nine Months Ended September 30, 2023
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	1,881	$	27,476	$	1,436	$	(6,744)	$	(696)	$	(1,596)	$	730
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	113	$	0	$	0	$	(278)	$	(297)	$	(754)	$	0
Gains (losses) recognized on derivatives	(35)		0		0		(84)		(10)		(275)		(17)
Gains (losses) recognized on hedged items(1)	(22)		0		0		81		9		388		17
Excluded component of fair value hedges(2)	0		0		0		0		0		(2)		0
Net income (expense) recognized on fair value hedges	$	56	$	0	$	0	$	(281)	$	(298)	$	(643)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains reclassified from AOCI into net income	$	0	$	(879)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		9		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(879)	$	9	$	0	$	0	$	0	$	1

_________

(1)Includes amortization benefit of $21 million and $62 million for the three and nine months ended September 30, 2024, respectively, and amortization benefit of $20 million and $56 million for the three and nine months ended September 30, 2023, respectively, related to basis adjustments on discontinued hedges.

(2)Changes in fair values of cross-currency swaps attributable to changes in cross-currency basis spreads are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income (“OCI”). The initial value of the excluded component is recognized in earnings over the life of the swap under the amortization approach.

(3)See “Note 10—Stockholders’ Equity” for the effects of cash flow and net investment hedges on AOCI and amounts reclassified to net income, net of tax.

(4)We recognized a loss of $56 million and $1 million for the three and nine months ended September 30, 2024, respectively, and gain of $100 million and $70 million for the three and nine months ended September 30, 2023, respectively, on foreign exchange contracts reclassified from AOCI. These amounts were largely offset by the foreign currency transaction gains (losses) on our foreign currency denominated intercompany funding included in other non-interest income on our consolidated statements of income.

In the next 12 months, we expect to reclassify into earnings an after-tax loss of $526 million recorded in AOCI as of September 30, 2024 associated with cash flow hedges of forecasted transactions. This amount will largely offset the cash flows associated with the forecasted transactions hedged by these derivatives. The maximum length of time over which forecasted transactions were hedged was approximately 9.5 years as of September 30, 2024. The amount we expect to reclassify into earnings may change as a result of changes in market conditions and ongoing actions taken as part of our overall risk management strategy.

124 Capital One Financial Corporation (COF)

Free-Standing Derivatives

The net impacts to our consolidated statements of income related to free-standing derivatives are presented below for the three and nine months ended September 30, 2024 and 2023. These gains or losses are recognized in other non-interest income on our consolidated statements of income.

Table 9.5: Gains (Losses) on Free-Standing Derivatives

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2024		2023		2024		2023
Gains (losses) recognized in other non-interest income:
Customer accommodation:
Interest rate contracts	$	3	$	7	$	20	$	26
Commodity contracts	5		11		13		28
Foreign exchange and other contracts	3		5		15		13
Total customer accommodation	11		23		48		67
Other interest rate exposures	48		81		206		199
Other contracts	(31)		(7)		(51)		(24)
Total	$	28	$	97	$	203	$	242

125 Capital One Financial Corporation (COF)

NOTE 10—STOCKHOLDERS’ EQUITY

Preferred Stock

The following table summarizes our preferred stock outstanding as of September 30, 2024 and December 31, 2023.

Table 10.1: Preferred Stock Outstanding(1)

			Redeemable by Issuer Beginning	Per Annum Dividend Rate	Dividend Frequency	Liquidation Preference per Share		Total Shares Outstanding as of September 30, 2024	Carrying Value (in millions)
Series	Description	Issuance Date							September 30, 2024		December 31, 2023
Series I	5.000% Non-Cumulative	September 11, 2019	December 1, 2024	5.000%	Quarterly	$	1,000	1,500,000	$	1,462	$	1,462
Series J	4.800% Non-Cumulative	January 31,  2020	June 1, 2025	4.800	Quarterly	1,000		1,250,000	1,209		1,209
Series K	4.625% Non-Cumulative	September 17, 2020	December 1, 2025	4.625	Quarterly	1,000		125,000	122		122
Series L	4.375% Non-Cumulative	May 4, 2021	September 1, 2026	4.375	Quarterly	1,000		675,000	652		652
Series M	3.950% Fixed Rate Reset Non-Cumulative	June 10, 2021	September 1, 2026	3.950% through 8/31/2026; resets 9/1/2026 and every subsequent 5 year anniversary at 5-Year Treasury Rate +3.157%	Quarterly	1,000		1,000,000	988		988
Series N	4.250% Non-Cumulative	July 29, 2021	September 1, 2026	4.250%	Quarterly	1,000		425,000	412		412
Total									$	4,845	$	4,845

__________

(1)Except for Series M, ownership is held in the form of depositary shares, each representing a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock.

Accumulated Other Comprehensive Income

AOCI primarily consists of accumulated net unrealized gains or losses associated with securities available for sale, changes in fair value of derivatives in hedging relationships and foreign currency translation adjustments.

The following table presents the changes in AOCI by component for the three and nine months ended September 30, 2024 and 2023.

Table 10.2: AOCI

	Three Months Ended September 30, 2024
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of June 30, 2024	$	(7,797)	$	(1,885)	$	12	$	(31)	$	(9,701)
Other comprehensive income before reclassifications	2,274		791		45		0		3,110
Amounts reclassified from AOCI into earnings	26		278		0		0		304
Other comprehensive income, net of tax	2,300		1,069		45		0		3,414
AOCI as of September 30, 2024	$	(5,497)	$	(816)	$	57	$	(31)	$	(6,287)

126 Capital One Financial Corporation (COF)

	Nine Months Ended September 30, 2024
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of December 31, 2023	$	(6,769)	$	(1,493)	$	26	$	(32)	$	(8,268)
Other comprehensive income (loss) before reclassifications	1,246		(21)		31		1		1,257
Amounts reclassified from AOCI into earnings	26		698		0		0		724
Other comprehensive income, net of tax	1,272		677		31		1		1,981
AOCI as of September 30, 2024	$	(5,497)	$	(816)	$	57	$	(31)	$	(6,287)

	Three Months Ended September 30, 2023
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of June 30, 2023	$	(7,602)	$	(2,205)	$	27	$	(38)	$	(9,818)
Other comprehensive income (loss) before reclassifications	(2,108)		(424)		(39)		0		(2,571)
Amounts reclassified from AOCI into earnings	0		165		0		0		165
Other comprehensive income (loss), net of tax	(2,108)		(259)		(39)		0		(2,406)
AOCI as of September 30, 2023	$	(9,710)	$	(2,464)	$	(12)	$	(38)	$	(12,224)

	Nine Months Ended September 30, 2023
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of December 31, 2022	$	(7,676)	$	(2,182)	$	(20)	$	(38)	$	(9,916)
Other comprehensive income (loss) before reclassifications	(2,034)		(890)		8		0		(2,916)
Amounts reclassified from AOCI into earnings	0		608		0		0		608
Other comprehensive income (loss), net of tax	(2,034)		(282)		8		0		(2,308)
AOCI as of September 30, 2023	$	(9,710)	$	(2,464)	$	(12)	$	(38)	$	(12,224)

__________

(1)Includes amounts related to cash flow hedges as well as the excluded component of cross-currency swaps designated as fair value hedges.

(2)Includes other comprehensive losses of $134 million and $72 million for the three and nine months ended September 30, 2024, respectively, and other comprehensive gains of $115 million and losses of $1 million for the three and nine months ended September 30, 2023, respectively, from hedging instruments designated as net investment hedges.

127 Capital One Financial Corporation (COF)

The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the three and nine months ended September 30, 2024 and 2023.

Table 10.3: Reclassifications from AOCI

(Dollars in millions)		Three Months Ended September 30,				Nine Months Ended September 30,
AOCI Components	Affected Income Statement Line Item	2024		2023		2024		2023
Securities available for sale:
	Non-interest income (expense)	$	(34)	$	0	$	(34)	$	0
	Income tax provision (benefit)	(8)		0		(8)		0
	Net income (loss)	(26)		0		(26)		0
Hedging relationships:
Interest rate contracts:	Interest income (expense)	(314)		(320)		(936)		(879)
Foreign exchange contracts:	Interest income	2		3		7		9
	Interest income (expense)	0		(1)		7		(2)
	Non-interest income (expense)	(56)		100		(1)		70
	Income (loss) from continuing operations before income taxes	(368)		(218)		(923)		(802)
	Income tax provision (benefit)	(90)		(53)		(225)		(194)
	Net income (loss)	(278)		(165)		(698)		(608)
Other:
	Non-interest income and non-interest expense	0		0		0		0
	Income tax provision (benefit)	0		0		0		0
	Net income (loss)	0		0		0		0
Total reclassifications		$	(304)	$	(165)	$	(724)	$	(608)

128 Capital One Financial Corporation (COF)

CAPITAL ONE FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The table below summarizes other comprehensive income (loss) activity and the related tax impact for the three and nine months ended September 30, 2024 and 2023.

Table 10.4: Other Comprehensive Income (Loss)

	Three Months Ended September 30,
	2024						2023
(Dollars in millions)	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale	$	3,033	$	733	$	2,300	$	(2,780)	$	(672)	$	(2,108)
Net unrealized gains (losses) on hedging relationships	1,412		343		1,069		(342)		(83)		(259)
Foreign currency translation adjustments(1)	2		(43)		45		(2)		37		(39)
Other comprehensive income (loss)	$	4,447	$	1,033	$	3,414	$	(3,124)	$	(718)	$	(2,406)

	Nine Months Ended September 30,
	2024						2023
(Dollars in millions)	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale	$	1,674	$	402	$	1,272	$	(2,684)	$	(650)	$	(2,034)
Net unrealized gains (losses) on hedging relationships	894		217		677		(372)		(90)		(282)
Foreign currency translation adjustments(1)	8		(23)		31		8		0		8
Other	1		0		1		0		0		0
Other comprehensive income (loss)	$	2,577	$	596	$	1,981	$	(3,048)	$	(740)	$	(2,308)

__________

(1)Includes the impact of hedging instruments designated as net investment hedges.

129 Capital One Financial Corporation (COF)

NOTE 11—EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings per common share.

Table 11.1: Computation of Basic and Diluted Earnings per Common Share

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars and shares in millions, except per share data)	2024		2023		2024		2023
Net income	$	1,777	$	1,790	$	3,654	$	4,181
Dividends and undistributed earnings allocated to participating securities	(28)		(28)		(60)		(67)
Preferred stock dividends	(57)		(57)		(171)		(171)
Net income available to common stockholders	$	1,692	$	1,705	$	3,423	$	3,943
Total weighted-average basic common shares outstanding	383.0		382.5		382.8		382.7
Effect of dilutive securities:(1)
Stock options	0.1		0.1		0.2		0.1
Other contingently issuable shares	0.6		0.7		0.7		0.8
Total effect of dilutive securities	0.7		0.8		0.9		0.9
Total weighted-average diluted common shares outstanding	383.7		383.3		383.7		383.6
Basic earnings per common share:
Net income per basic common share	$	4.42	$	4.46	$	8.94	$	10.31
Diluted earnings per common share:(1)
Net income per diluted common share	$	4.41	$	4.45	$	8.92	$	10.28

__________

(1)Excluded from the computation of diluted earnings per share were awards of 43 thousand shares and 13 thousand shares for the nine months ended September 30, 2024 and 2023, respectively, because their inclusion would be anti-dilutive. There were no awards excluded from the computation of dilutive earning per share for the three months ended September 30, 2024 and 2023.

,,

130 Capital One Financial Corporation (COF)

NOTE 12—FAIR VALUE MEASUREMENT

Fair value, also referred to as an exit price, is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. The fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are described below:

Level 1:	Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2:	Valuation is based on observable market-based inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:	Valuation is generated from techniques that use significant assumptions not observable in the market. Valuation techniques include pricing models, discounted cash flow (“DCF”) methodologies or similar techniques.

The accounting guidance for fair value measurements requires that we maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. We consider all available information, including observable market data, indications of market liquidity and orderliness, and our understanding of the valuation techniques and significant inputs. Based upon the specific facts and circumstances of each instrument or instrument category, judgments are made regarding the significance of the observable or unobservable inputs to the instruments’ fair value measurement in its entirety. If unobservable inputs are considered significant, the instrument is classified as Level 3. The process for determining fair value using unobservable inputs is generally more subjective and involves a high degree of management judgment and assumptions. The accounting guidance provides for the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at inception of the contract and record any subsequent changes in fair value in earnings.

The determination and classification of financial instruments in the fair value hierarchy is performed at the end of each reporting period. For additional information on the valuation techniques used in estimating the fair value of our financial assets and liabilities on a recurring basis, see “Part II—Item 8. Financial Statements and Supplementary Data—Note 16—Fair Value Measurement” in our 2023 Form 10-K.

131 Capital One Financial Corporation (COF)

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table displays our assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis as of September 30, 2024 and December 31, 2023.

Table 12.1: Assets and Liabilities Measured at Fair Value on a Recurring Basis

	September 30, 2024
	Fair Value Measurements Using						Netting Adjustments(1)
(Dollars in millions)	Level 1		Level 2		Level 3				Total
Assets:
Securities available for sale:
U.S. Treasury securities	$	6,032	$	0	$	0	$	0	$	6,032
RMBS	0		66,127		180		0		66,307
CMBS	0		8,181		2		0		8,183
Other securities	131		2,847		0		0		2,978
Total securities available for sale	6,163		77,155		182		0		83,500
Loans held for sale	0		77		0		0		77
Other assets:
Derivative assets(2)	866		929		613		(725)		1,683
Other(3)	675		0		34		0		709
Total assets	$	7,704	$	78,161	$	829	$	(725)	$	85,969
Liabilities:
Other liabilities:
Derivative liabilities(2)	$	574	$	1,515	$	568	$	(622)	$	2,035
Total liabilities	$	574	$	1,515	$	568	$	(622)	$	2,035

	December 31, 2023
	Fair Value Measurements Using						Netting Adjustments(1)
(Dollars in millions)	Level 1		Level 2		Level 3				Total
Assets:
Securities available for sale:
U.S. Treasury securities	$	5,282	$	0	$	0	$	0	$	5,282
RMBS	0		63,492		146		0		63,638
CMBS	0		8,191		132		0		8,323
Other securities	126		1,748		0		0		1,874
Total securities available for sale	5,408		73,431		278		0		79,117
Loans held for sale	0		347		0		0		347
Other assets:
Derivative assets(2)	788		1,001		886		(1,005)		1,670
Other(3)	589		3		35		0		627
Total assets	$	6,785	$	74,782	$	1,199	$	(1,005)	$	81,761
Liabilities:
Other liabilities:
Derivative liabilities(2)	$	449	$	1,655	$	828	$	(597)	$	2,335
Total liabilities	$	449	$	1,655	$	828	$	(597)	$	2,335

__________

(1)Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. See “Note 9—Derivative Instruments and Hedging Activities” for additional information.

(2)Does not reflect approximately $3 million and $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of September 30, 2024 and December 31, 2023, respectively. Non-performance risk is included in the measurement of derivative assets and liabilities on our consolidated balance sheets, and is recorded through non-interest income in the consolidated statements of income.

132 Capital One Financial Corporation (COF)

(3)As of September 30, 2024 and December 31, 2023, other includes retained interests in securitizations of $34 million and $35 million, deferred compensation plan assets of $670 million and $578 million and equity securities of $5 million (including unrealized gains of $5 million) and $14 million (including unrealized gains of $5 million), respectively.

Level 3 Recurring Fair Value Rollforward

The table below presents a reconciliation for all assets and liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2024 and 2023. Generally, transfers into Level 3 were primarily driven by the usage of unobservable assumptions in the pricing of these financial instruments as evidenced by wider pricing variations among pricing vendors and transfers out of Level 3 were primarily driven by the usage of assumptions corroborated by market observable information as evidenced by tighter pricing among multiple pricing sources.

133 Capital One Financial Corporation (COF)

Table 12.2: Level 3 Recurring Fair Value Rollforward

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2024
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2024(1)
(Dollars in millions)	Balance, July 1, 2024		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2024
Securities available for sale:(2)
RMBS	$	304	$	2	$	11	$	0	$	0	$	0	$	(4)	$	2	$	(135)	$	180	$	2
CMBS	2		0		0		0		0		0		0		0		0		2		0
Total securities available for sale	306		2		11		0		0		0		(4)		2		(135)		182		2
Other assets:
Retained interests in securitizations	34		0		0		0		0		0		0		0		0		34		0
Net derivative assets (liabilities)(3)	69		(20)		0		0		0		4		(8)		0		0		45		(15)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2024
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2024(1)
(Dollars in millions)	Balance, January 1, 2024		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2024
Securities available for sale:(2)
RMBS	$	146	$	6	$	8	$	0	$	0	$	0	$	(9)	$	187	$	(158)	$	180	$	5
CMBS	132		0		(3)		0		0		0		(3)		0		(124)		2		0
Total securities available for sale	278		6		5		0		0		0		(12)		187		(282)		182		5
Other assets:
Retained interests in securitizations	35		(1)		0		0		0		0		0		0		0		34		(1)
Net derivative assets (liabilities)(3)	58		(17)		0		0		0		1		3		0		0		45		(18)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2023
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2023(1)
(Dollars in millions)	Balance, July 1, 2023		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2023
Securities available for sale:(2)
RMBS	$	206	$	2	$	(5)	$	0	$	0	$	0	$	(6)	$	2	$	(50)	$	149	$	2
CMBS	133		0		(6)		0		0		0		(1)		0		0		126		0
Total securities available for sale	339		2		(11)		0		0		0		(7)		2		(50)		275		2
Other assets:
Retained interests in securitizations	36		(1)		0		0		0		0		0		0		0		35		(1)
Net derivative assets (liabilities)(3)	64		(2)		0		0		0		3		18		(15)		0		68		4

134 Capital One Financial Corporation (COF)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2023
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2023(1)
(Dollars in millions)	Balance, January 1, 2023		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2023
Securities available for sale:(2)
RMBS	$	236	$	6	$	(4)	$	0	$	0	$	0	$	(17)	$	47	$	(119)	$	149	$	5
CMBS	142		0		(12)		0		0		0		(4)		0		0		126		0
Total securities available for sale	378		6		(16)		0		0		0		(21)		47		(119)		275		5
Other assets:
Retained interests in securitizations	36		(1)		0		0		0		0		0		0		0		35		(1)
Net derivative assets (liabilities)(3)(4)	5		(20)		0		0		0		176		75		(167)		(1)		68		71

_________

(1)Realized gains (losses) on securities available for sale are included in net securities gains (losses) and retained interests in securitizations are reported as a component of non-interest income in our consolidated statements of income. Gains (losses) on derivatives are included as a component of net interest income or non-interest income in our consolidated statements of income.

(2)For both the three and nine months ended September 30, 2024, included in OCI related to Level 3 securities available for sale still held as of September 30, 2024 were net unrealized losses of $2 million. For the three and nine months ended September 30, 2023, included in OCI related to Level 3 securities available for sale still held as of September 30, 2023 were net unrealized losses of $9 million and $14 million, respectively.

(3)Includes derivative assets and liabilities of $613 million and $568 million, respectively, as of September 30, 2024 and $1.3 billion and $1.3 billion, respectively, as of September 30, 2023.

(4)Transfers into Level 3 primarily consist of term Secured Overnight Financing Rate (“SOFR”)-indexed interest rate derivatives.

Significant Level 3 Fair Value Asset and Liability Inputs

Generally, uncertainties in fair value measurements of financial instruments, such as changes in unobservable inputs, may have a significant impact on fair value. Certain of these unobservable inputs will, in isolation, have a directionally consistent impact on the fair value of the instrument for a given change in that input. Alternatively, the fair value of the instrument may move in an opposite direction for a given change in another input. In general, an increase in the discount rate, default rates, loss severity or credit spreads, in isolation, would result in a decrease in the fair value measurement. In addition, an increase in default rates would generally be accompanied by a decrease in recovery rates, slower prepayment rates and an increase in liquidity spreads, and would lead to a decrease in the fair value measurement.

135 Capital One Financial Corporation (COF)

Techniques and Inputs for Level 3 Fair Value Measurements

The following table presents the significant unobservable inputs used to determine the fair values of our Level 3 financial instruments on a recurring basis. We utilize multiple vendor pricing services to obtain fair value for our securities. Several of our vendor pricing services are only able to provide unobservable input information for a limited number of securities due to software licensing restrictions. Other vendor pricing services are able to provide unobservable input information for all securities for which they provide a valuation. As a result, the unobservable input information for the securities available for sale presented below represents a composite summary of all information we are able to obtain. The unobservable input information for all other Level 3 financial instruments is based on the assumptions used in our internal valuation models.

Table 12.3: Quantitative Information about Level 3 Fair Value Measurements

	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in millions)	Fair Value at September 30, 2024		Significant Valuation Techniques	Significant Unobservable Inputs	Range	Weighted Average(1)
Securities available for sale:
RMBS	$	180	Discounted cash flows (vendor pricing)	Yield Voluntary prepayment rate Default rate Loss severity	4-14% 0-12% 0-6% 25-80%	6% 7% 1% 61%
CMBS	2		Discounted cash flows (vendor pricing)	Yield	5-7%	7%
Other assets:
Retained interests in securitizations(2)	34		Discounted cash flows	Life of receivables (months) Voluntary prepayment rate Discount rate Default rate Loss severity	31-73 7-9% 5-14% 1-2% 46-155%	N/A
Net derivative assets (liabilities)	45		Discounted cash flows	Swap rates	3-5%	3%

	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in millions)	Fair Value at December 31, 2023		Significant Valuation Techniques	Significant Unobservable Inputs	Range	Weighted Average(1)
Securities available for sale:
RMBS	$	146	Discounted cash flows (vendor pricing)	Yield Voluntary prepayment rate Default rate Loss severity	2-19% 0-12% 0-10% 30-80%	7% 7% 1% 61%
CMBS	132		Discounted cash flows (vendor pricing)	Yield	5-7%	5%
Other assets:
Retained interests in securitizations(2)	35		Discounted cash flows	Life of receivables (months) Voluntary prepayment rate Discount rate Default rate Loss severity	33-69 9% 5-14% 2% 53-163%	N/A
Net derivative assets (liabilities)	58		Discounted cash flows	Swap rates	3-5%	4%

__________

(1)Weighted averages are calculated by using the product of the input multiplied by the relative fair value of the instruments.

(2)Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs.

136 Capital One Financial Corporation (COF)

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

We are required to measure and recognize certain assets at fair value on a nonrecurring basis on the consolidated balance sheets. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, from the application of lower of cost or fair value accounting or when we evaluate for impairment).

The following table presents the carrying value of the assets measured at fair value on a nonrecurring basis and still held as of September 30, 2024 and December 31, 2023, and for which a nonrecurring fair value measurement was recorded during the nine and twelve months then ended.

Table 12.4: Nonrecurring Fair Value Measurements

	September 30, 2024
	Estimated Fair Value Hierarchy				Total
(Dollars in millions)	Level 2		Level 3
Loans held for investment	$	0	$	738	$	738
Loans held for sale	10		0		10
Other assets(1)	0		100		100
Total	$	10	$	838	$	848

	December 31, 2023
	Estimated Fair Value Hierarchy				Total
(Dollars in millions)	Level 2		Level 3
Loans held for investment	$	0	$	545	$	545
Loans held for sale	37		0		37
Other assets(1)	0		214		214
Total	$	37	$	759	$	796

__________

(1)As of September 30, 2024, other assets includes investments accounted for under measurement alternative of $47 million, cost method investments of $1 million and repossessed assets of $52 million. As of December 31, 2023, other assets included investments accounted for under measurement alternative of $46 million, repossessed assets of $45 million and long-lived assets held for sale and right-of-use assets totaling $123 million.

In the above table, loans held for investment are generally valued based in part on the estimated fair value of the underlying collateral and the non-recoverable rate, which is considered to be a significant unobservable input. The non-recoverable rate ranged from 7% to 61%, with a weighted average of 19%, and from 0% to 100%, with a weighted average of 18%, as of September 30, 2024 and December 31, 2023, respectively. The weighted average non-recoverable rate is calculated based on the estimated market value of the underlying collateral. The significant unobservable inputs and related quantitative information related to fair value of the other assets are not meaningful to disclose as they vary significantly across properties and collateral.

The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that are still held at September 30, 2024 and 2023.

Table 12.5: Nonrecurring Fair Value Measurements Included in Earnings

	Total Gains (Losses)
	Nine Months Ended September 30,
(Dollars in millions)	2024		2023
Loans held for investment	$	(224)	$	(315)
Loans held for sale	(6)		0
Other assets(1)	(64)		(52)
Total	$	(294)	$	(367)

__________

137 Capital One Financial Corporation (COF)

(1)Other assets primarily include fair value adjustments related to repossessed assets and equity investments accounted for under the measurement alternative.

Fair Value of Financial Instruments

The following table presents the carrying value and estimated fair value, including the level within the fair value hierarchy, of our financial instruments that are not measured at fair value on a recurring basis on our consolidated balance sheets as of September 30, 2024 and December 31, 2023.

Table 12.6: Fair Value of Financial Instruments

	September 30, 2024
	Carrying Value		Estimated Fair Value		Estimated Fair Value Hierarchy
(Dollars in millions)					Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	49,298	$	49,298	$	3,976	$	45,322	$	0
Restricted cash for securitization investors	421		421		421		0		0
Net loans held for investment	303,709		308,901		0		0		308,901
Loans held for sale	19		19		0		19		0
Interest receivable	2,577		2,577		0		2,577		0
Other investments(1)	1,330		1,330		0		1,330		0
Financial liabilities:
Deposits with defined maturities	77,678		77,893		0		77,893		0
Securitized debt obligations	15,881		15,939		0		15,939		0
Senior and subordinated notes	32,911		33,694		0		33,694		0
Federal funds purchased and securities loaned or sold under agreements to repurchase	520		520		0		520		0
Interest payable	705		705		0		705		0

	December 31, 2023
	Carrying Value		Estimated Fair Value		Estimated Fair Value Hierarchy
(Dollars in millions)					Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	43,297	$	43,297	$	4,903	$	38,394	$	0
Restricted cash for securitization investors	458		458		458		0		0
Net loans held for investment	305,176		308,044		0		0		308,044
Loans held for sale	507		515		0		515		0
Interest receivable	2,478		2,478		0		2,478		0
Other investments(1)	1,329		1,329		0		1,329		0
Financial liabilities:
Deposits with defined maturities	83,014		82,990		0		82,990		0
Securitized debt obligations	18,043		18,067		0		18,067		0
Senior and subordinated notes	31,248		31,524		0		31,524		0
Federal funds purchased and securities loaned or sold under agreements to repurchase	538		538		0		538		0
Interest payable	649		649		0		649		0

__________

(1)Other investments include FHLB and Federal Reserve stock. These investments are included in other assets on our consolidated balance sheets.

138 Capital One Financial Corporation (COF)

NOTE 13—BUSINESS SEGMENTS AND REVENUE FROM CONTRACTS WITH CUSTOMERS

Our principal operations are organized into three major business segments, which are defined primarily based on the products and services provided or the types of customers served: Credit Card, Consumer Banking and Commercial Banking. The operations of acquired businesses have been integrated into or managed as a part of our existing business segments. Certain activities that are not part of a business segment are included in the Other category, such as the management of our corporate investment portfolio and asset/liability positions performed by our centralized Corporate Treasury group and any residual tax expense or benefit beyond what is assessed to our business segments in order to arrive at the consolidated effective tax rate. The Other category also includes unallocated corporate expenses that do not directly support the operations of the business segments or for which the business segments are not considered financially accountable in evaluating their performance, such as certain restructuring charges and integration expenses related to the agreement to acquire Discover.

Basis of Presentation

We report the results of each of our business segments on a continuing operations basis. The results of our individual businesses reflect the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources.

Business Segment Reporting Methodology

The results of our business segments are intended to present each segment as if it were a stand-alone business. Our internal management and reporting process used to derive our segment results employs various allocation methodologies, including funds transfer pricing, to assign certain balance sheet assets, deposits and other liabilities and their related revenues and expenses directly or indirectly attributable to each business segment. Our funds transfer pricing process managed by our centralized Corporate Treasury group provides a funds credit for sources of funds, such as deposits generated by our Consumer Banking and Commercial Banking businesses, and a charge for the use of funds by each segment. The allocation is unique to each business segment and acquired business and is based on the composition of assets and liabilities. The funds transfer pricing process considers the interest rate and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically the methodology and assumptions utilized in the funds transfer pricing process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the business segments. Due to the integrated nature of our business segments, estimates and judgments have been made in allocating certain revenue and expense items. Transactions between segments are based on specific criteria or approximate market rates. We regularly assess the assumptions, methodologies and reporting classifications used for segment reporting, which may result in the implementation of refinements or changes in future periods. We provide additional information on the allocation methodologies used to derive our business segment results in “Part II—Item 8. Financial Statements and Supplementary Data—Note 17—Business Segments and Revenue from Contracts with Customers” in our 2023 Form 10-K.

Segment Results and Reconciliation

We may periodically change our business segments or reclassify business segment results based on modifications to our management reporting methodologies or changes in organizational alignment. The following table presents our business segment results for the three and nine months ended September 30, 2024 and 2023, selected balance sheet data as of September 30, 2024 and 2023, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits.

139 Capital One Financial Corporation (COF)

Table 13.1: Segment Results and Reconciliation

	Three Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	5,743	$	2,028	$	596	$	(291)	$	8,076
Non-interest income (loss)	1,509		182		292		(45)		1,938
Total net revenue (loss)(2)	7,252		2,210		888		(336)		10,014
Provision (benefit) for credit losses	2,084		351		48		(1)		2,482
Non-interest expense	3,367		1,331		495		121		5,314
Income (loss) from continuing operations before income taxes	1,801		528		345		(456)		2,218
Income tax provision (benefit)	427		125		82		(193)		441
Income (loss) from continuing operations, net of tax	$	1,374	$	403	$	263	$	(263)	$	1,777
Loans held for investment	$	156,651	$	76,758	$	86,834	$	0	$	320,243
Deposits	0		309,569		30,598		13,464		353,631

	Nine Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	16,309	$	6,064	$	1,804	$	(1,067)	$	23,110
Non-interest income (loss)	4,491		513		844		(36)		5,812
Total net revenue (loss)(2)	20,800		6,577		2,648		(1,103)		28,922
Provision (benefit) for credit losses	7,888		1,107		80		(1)		9,074
Non-interest expense	9,730		3,827		1,493		347		15,397
Income (loss) from continuing operations before income taxes	3,182		1,643		1,075		(1,449)		4,451
Income tax provision (benefit)	756		388		254		(601)		797
Income (loss) from continuing operations, net of tax	$	2,426	$	1,255	$	821	$	(848)	$	3,654
Loans held for investment	$	156,651	$	76,758	$	86,834	$	0	$	320,243
Deposits	0		309,569		30,598		13,464		353,631

	Three Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	5,114	$	2,133	$	621	$	(445)	$	7,423
Non-interest income	1,513		142		288		0		1,943
Total net revenue (loss)(2)	6,627		2,275		909		(445)		9,366
Provision for credit losses	1,953		213		116		2		2,284
Non-interest expense	3,015		1,262		512		71		4,860
Income (loss) from continuing operations before income taxes	1,659		800		281		(518)		2,222
Income tax provision (benefit)	393		189		67		(217)		432
Income (loss) from continuing operations, net of tax	$	1,266	$	611	$	214	$	(301)	$	1,790
Loans held for investment	$	146,783	$	76,844	$	91,153	$	0	$	314,780
Deposits	0		290,789		36,035		19,187		346,011

                                                                                                                                                                                                                                                                                                                                                                                                                                    

140 Capital One Financial Corporation (COF)

	Nine Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	14,498	$	6,762	$	1,901	$	(1,439)	$	21,722
Non-interest income	4,375		426		757		1		5,559
Total net revenue (loss)(2)	18,873		7,188		2,658		(1,438)		27,281
Provision for credit losses	6,298		747		521		3		7,569
Non-interest expense	9,073		3,776		1,524		226		14,599
Income (loss) from continuing operations before income taxes	3,502		2,665		613		(1,667)		5,113
Income tax provision (benefit)	830		629		145		(672)		932
Income (loss) from continuing operations, net of tax	$	2,672	$	2,036	$	468	$	(995)	$	4,181
Loans held for investment	$	146,783	$	76,844	$	91,153	$	0	$	314,780
Deposits	0		290,789		36,035		19,187		346,011

_________

(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(2)Total net revenue was reduced by $624 million and $1.9 billion in the three and nine months ended September 30, 2024, respectively, and $449 million and $1.3 billion in the three and nine months ended September 30, 2023, respectively, for credit card finance charges and fees charged off as uncollectible.

Revenue from Contracts with Customers

The majority of our revenue from contracts with customers consists of interchange fees, service charges and other customer-related fees, and other contract revenue. Interchange fees are primarily from our Credit Card business and are recognized upon settlement with the interchange networks, net of rewards earned by customers. Service charges and other customer-related fees within our Consumer Banking business are primarily related to fees earned on consumer deposit accounts for account maintenance and various transaction-based services such as automated teller machine (“ATM”) usage. Service charges and other customer-related fees within our Commercial Banking business are mostly related to fees earned on treasury management and capital markets services. Other contract revenue in our Credit Card business consists primarily of revenue from our partnership arrangements. Other contract revenue in our Consumer Banking business consists primarily of revenue earned from services provided to auto industry participants. Revenue from contracts with customers is included in non-interest income in our consolidated statements of income.

The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the three and nine months ended September 30, 2024 and 2023.

Table 13.2: Revenue from Contracts with Customers and Reconciliation to Segment Results

	Three Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,086	$	113	$	28	$	1	$	1,228
Service charges and other customer-related fees	0		23		92		0		115
Other	67		36		1		0		104
Total contract revenue	1,153		172		121		1		1,447
Revenue (reduction) from other sources	356		10		171		(46)		491
Total non-interest income (loss)	$	1,509	$	182	$	292	$	(45)	$	1,938

141 Capital One Financial Corporation (COF)

	Nine Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	3,222	$	318	$	81	$	1	$	3,622
Service charges and other customer-related fees	0		66		239		0		305
Other	271		101		6		0		378
Total contract revenue	3,493		485		326		1		4,305
Revenue (reduction) from other sources	998		28		518		(37)		1,507
Total non-interest income (loss)	$	4,491	$	513	$	844	$	(36)	$	5,812

	Three Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,115	$	92	$	27	$	0	$	1,234
Service charges and other customer-related fees	0		21		78		0		99
Other	111		28		3		0		142
Total contract revenue	1,226		141		108		0		1,475
Revenue from other sources	287		1		180		0		468
Total non-interest income	$	1,513	$	142	$	288	$	0	$	1,943

	Nine Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	3,251	$	270	$	64	$	1	$	3,586
Service charges and other customer-related fees	0		64		173		(1)		236
Other	257		74		16		0		347
Total contract revenue	3,508		408		253		0		4,169
Revenue from other sources	867		18		504		1		1,390
Total non-interest income	$	4,375	$	426	$	757	$	1	$	5,559

__________

(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(2)Interchange fees are presented net of customer reward expenses.    

142 Capital One Financial Corporation (COF)

NOTE 14—COMMITMENTS, CONTINGENCIES, GUARANTEES AND OTHERS

Commitments to Lend

Our unfunded lending commitments primarily consist of credit card lines, loan commitments to customers of both our Commercial Banking and Consumer Banking businesses, as well as standby and commercial letters of credit. These commitments, other than credit card lines and certain other unconditionally cancellable lines of credit, are legally binding conditional agreements that have fixed expirations or termination dates and specified interest rates and purposes. The contractual amount of these commitments represents the maximum possible credit risk to us should the counterparty draw upon the commitment. We generally manage the potential risk of unfunded lending commitments by limiting the total amount of arrangements, monitoring the size and maturity structure of these portfolios and applying the same credit standards for all of our credit activities.

For unused credit card lines, we have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time. Commitments to extend credit other than credit card lines generally require customers to maintain certain credit standards. Collateral requirements and loan-to-value (“LTV”) ratios are the same as those for funded transactions and are established based on management’s credit assessment of the customer. These commitments may expire without being drawn upon; therefore, the total commitment amount does not necessarily represent future funding requirements.

We also issue letters of credit, such as financial standby, performance standby and commercial letters of credit, to meet the financing needs of our customers. Standby letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third party in a borrowing arrangement. Commercial letters of credit are short-term commitments issued primarily to facilitate trade finance activities for customers and are generally collateralized by the goods being shipped to the customer. These collateral requirements are similar to those for funded transactions and are established based on management’s credit assessment of the customer. Management conducts regular reviews of all outstanding letters of credit and the results of these reviews are considered in assessing the adequacy of reserves for unfunded lending commitments.

The following table presents the contractual amount and carrying value of our unfunded lending commitments as of September 30, 2024 and December 31, 2023. The carrying value represents our reserve and deferred revenue on legally binding commitments.

Table 14.1: Unfunded Lending Commitments

	Contractual Amount				Carrying Value
(Dollars in millions)	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Credit card lines	$	412,905	$	392,867	N/A		N/A
Other loan commitments(1)	44,698		46,951		$	72	$	99
Standby letters of credit and commercial letters of credit(2)	1,266		1,465		27		23
Total unfunded lending commitments	$	458,869	$	441,283	$	99	$	122

__________

(1)Includes $5.0 billion and $4.7 billion of advised lines of credit as of September 30, 2024 and December 31, 2023, respectively.

(2)These financial guarantees have expiration dates that range from 2025 to 2027 as of September 30, 2024.

Loss Sharing Agreements

Within our Commercial Banking business, we originate multifamily commercial real estate loans with the intent to sell them to the GSEs. We enter into loss sharing agreements with the GSEs upon the sale of these originated loans. Beginning January 1, 2020, we elected the fair value option on new loss sharing agreements entered into. Unrealized gains and losses are recorded in other non-interest income in our consolidated statements of income. For those loss sharing agreements entered into as of and prior to December 31, 2019, we amortize the liability recorded at inception into non-interest income as we are released from risk of having to make a payment and record our estimate of expected credit losses each period through the provision for credit losses in our consolidated statements of income. The liability recognized on our consolidated balance sheets for these loss sharing agreements was $145 million and $137 million as of September 30, 2024 and December 31, 2023, respectively. See “Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments” for information related to our credit card partnership loss sharing arrangements.

143 Capital One Financial Corporation (COF)

Litigation

In accordance with the current accounting standards for loss contingencies, we establish reserves for litigation related matters that arise from the ordinary course of our business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated. None of the amounts we currently have recorded individually or in the aggregate are considered to be material to our financial condition. Litigation claims and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance. Below we provide a description of potentially material legal proceedings and claims.

For some of the matters disclosed below, we are able to estimate reasonably possible losses above existing reserves, and for other disclosed matters, such an estimate is not possible at this time. For those matters below where an estimate is possible, management currently estimates the reasonably possible future losses beyond our reserves as of September 30, 2024 are approximately $400 million. Our reserve and reasonably possible loss estimates involve considerable judgment and reflect that there is significant uncertainty regarding numerous factors that may impact the ultimate loss levels. Notwithstanding our attempt to estimate a reasonably possible range of loss beyond our current accrual levels for some litigation matters based on current information, it is possible that actual future losses will exceed both the current accrual level and reasonably possible losses disclosed here. Given the inherent uncertainties involved in these matters and the very large or indeterminate damages sought in some of these, there is significant uncertainty as to the ultimate liability we may incur from these litigation matters and an adverse outcome in one or more of these matters could be material to our results of operations or cash flows for any particular reporting period.

Interchange Litigation

In 2005, a putative class of retail merchants filed antitrust lawsuits against MasterCard and Visa and several issuing banks, including Capital One, seeking both injunctive relief and monetary damages for an alleged conspiracy by defendants to fix the level of interchange fees. The Visa and MasterCard payment networks and issuing banks entered into settlement and judgment sharing agreements allocating the liabilities of any judgment or settlement arising from all interchange-related cases.

The lawsuits were consolidated before the U.S. District Court for the Eastern District of New York for certain purposes and were settled in 2012. The class settlement, however, was invalidated by the United States Court of Appeals for the Second Circuit in June 2016, and the suit was bifurcated into separate class actions seeking injunctive and monetary relief, respectively. In addition, numerous merchant groups opted out of the 2012 settlement. 

The monetary relief class action settled for $5.5 billion and was approved by the District Court in December 2019. The Second Circuit affirmed the settlement in March 2023, and it is final. Some of the merchants that opted out of the monetary relief class have brought cases, and some of those cases have settled and some remain pending. Visa created a litigation escrow account following its initial public offering of stock in 2008 that funds the portion of these settlements attributable to Visa-allocated transactions. Any settlement amounts based on MasterCard-allocated transactions that have not already been paid are reflected in our reserves. Visa and MasterCard reached a settlement with the injunctive relief class and filed a motion for preliminary approval, which was denied by the District Court in June 2024. The parties will continue to litigate unless a settlement is reached and approved.

Cybersecurity Incident

On July 29, 2019, we announced that on March 22 and 23, 2019 an outside individual gained unauthorized access to our systems. This individual obtained certain types of personal information relating to people who had applied for our credit card products and to our credit card customers (the “2019 Cybersecurity Incident”). As a result of the 2019 Cybersecurity Incident, we have been subject to numerous legal proceedings and other inquiries and could be the subject of additional proceedings and inquiries in the future.

Consumer class actions. We are named as a defendant in 4 putative consumer class action cases in Canadian courts alleging harm from the 2019 Cybersecurity Incident and seeking various remedies, including monetary and injunctive relief. The lawsuits allege breach of contract, negligence, violations of various privacy laws and a variety of other legal causes of action. In the second quarter of 2022, a trial court in British Columbia preliminarily certified a class of all impacted Canadian consumers except those in Quebec. The preliminary certification decision in British Columbia was appealed, with both sides contesting portions of the ruling. On July 4, 2024, the British Columbia Court of Appeals denied both parties’ appeals. In the third quarter of 2023, a trial court in Quebec preliminarily authorized a class of all impacted consumers in Quebec. This

144 Capital One Financial Corporation (COF)

decision also has been appealed. The final two putative class actions, both of which are pending in Alberta, are continuing in parallel, but currently remain at a preliminary stage. A fifth putative class action in Ontario was dismissed with prejudice and all appeals of that decision have now been exhausted.

Governmental inquiries. In August 2020, we entered into consent orders with the Board of Governors of the Federal Reserve System (“Federal Reserve”) and the Office of the Comptroller of the Currency (“OCC”) resulting from regulatory reviews of the 2019 Cybersecurity Incident and relating to ongoing enhancements of our cybersecurity and operational risk management processes. We paid an $80 million penalty to the U.S. Treasury as part of the OCC agreement. The Federal Reserve agreement did not contain a monetary penalty. The OCC lifted its consent order on August 31, 2022 and the Federal Reserve lifted its consent order on July 5, 2023. On August 12, 2019, Canada’s Office of Privacy Commissioner (“OPC”) also initiated an investigation into the 2019 Cybersecurity Incident. That investigation concluded in April 2024 with no further action required.

U.K. PPI Litigation

In the U.K., we previously sold payment protection insurance (“PPI”). For several years leading up to the claims submission deadline of August 29, 2019 (as set by the U.K. Financial Conduct Authority (“FCA”)), we received customer complaints and regulatory claims relating to PPI. COEP has materially resolved the PPI complaints and regulatory claims received prior to the deadline. Some of the claimants in the U.K. PPI regulatory claims process have subsequently initiated legal proceedings, seeking additional redress. We are responding to these proceedings as we receive them.

Savings Account Litigation and Related Government Investigation

On July 10, 2023, we were sued in a putative class action in the Eastern District of Virginia by savings account holders alleging breach of contract and a variety of other causes of action relating to our introduction of a new savings account product with a higher interest rate than existing savings account products (“Savings Account Litigation”). Since the original suit, we have also been sued in six similar putative class actions in federal courts in California, Illinois, Ohio, Virginia, New Jersey and New York. On March 20, 2024, we filed with the Judicial Panel on Multidistrict Litigation a motion to consolidate and transfer related actions to the Eastern District of Virginia. In June 2024, the Judicial Panel granted the motion and transferred the related actions to the Eastern District of Virginia. Plaintiffs filed a consolidated complaint on July 1, 2024 and the court set a trial date in July 2025. We filed a motion to dismiss the consolidated complaint, which is fully briefed and pending with the court.

In August 2024, we received a Civil Investigative Demand from the Consumer Financial Protection Bureau (“CFPB”) relating to the savings account products at issue in the litigation. In October 2024, the CFPB issued a Notice of Opportunity to Respond and Advise (“NORA”) letter indicating that the CFPB is considering an enforcement action against us on similar grounds as the claims in the Savings Account Litigation. We are responding to the NORA letter and it is possible the CFPB will pursue an enforcement action, including possible litigation, at the end of the NORA process.

Other Pending and Threatened Litigation

In addition, we are commonly subject to various pending and threatened legal actions relating to the conduct of our normal business activities. In the opinion of management, the ultimate aggregate liability, if any, arising out of all such other pending or threatened legal actions is not expected to be material to our consolidated financial position or our results of operations.

Other Contingencies

Deposit Insurance Assessments

On November 16, 2023, the Federal Deposit Insurance Corporation (“FDIC”) finalized a rule to implement a special assessment to recover the loss to the Deposit Insurance Fund (“DIF”) arising from the protection of uninsured depositors in connection with the systemic risk determination announced on March 12, 2023, following the closures of Silicon Valley Bank and Signature Bank. In December 2023, the FDIC provided notification that they would be collecting the special assessment at an annual rate of approximately 13.4 basis points (“bps”) over eight quarterly collection periods, beginning with the first quarter of 2024 with the first payment due on June 28, 2024. In June 2024, the FDIC provided notification that the collection period will be extended an additional two quarters beyond the initial eight quarterly collection periods at a lower annual rate. The special assessment base is equal to an insured depository institution’s estimated uninsured deposits reported on its Consolidated Reports of Condition and Income as of December 31, 2022 (“2022 Call Report”), adjusted to exclude the first $5 billion of uninsured deposits. We recognized $289 million in operating expense in the fourth quarter of 2023 associated with the special assessment

145 Capital One Financial Corporation (COF)

based on our 2022 Call Report, which was revised and refiled during 2023. We recognized incremental operating expenses in 2024 as a result of updates from the FDIC related to our portion of the FDIC’s estimate of relevant DIF losses. We have recognized $330 million of operating expenses related to the special assessment as of September 30, 2024.

It is reasonably possible amendments will be needed to our 2022 Call Report due to future legal and regulatory developments, which could result in additional expenses associated with the special assessment. The ultimate amount of expenses associated with the special assessment will also be impacted by the finalization of the losses incurred by the FDIC in the resolutions of Silicon Valley Bank and Signature Bank. The amount of reasonably possible additional special assessment fees beyond our existing accrual due to these factors is approximately $200 million.

146 Capital One Financial Corporation (COF)

Item 3. Quantitative and Qualitative Disclosures about Market Risk

For a discussion of the quantitative and qualitative disclosures about market risk, see “Part I—Item 2. MD&A—Market Risk Profile.”

Item 4. Controls and Procedures

Overview

We are required under applicable laws and regulations to maintain controls and procedures, which include disclosure controls and procedures as well as internal control over financial reporting, as further described below. 

(a) Disclosure Controls and Procedures

Disclosure controls and procedures refer to controls and other procedures designed to provide reasonable assurance that information required to be disclosed in our financial reports is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and that such information is accumulated and communicated to management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding our required disclosure. In designing and evaluating our disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and we must apply judgment in evaluating and implementing possible controls and procedures. 

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 of the Securities Exchange Act of 1934 (“Exchange Act”), our management, including the CEO and CFO, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of September 30, 2024, the end of the period covered by this Report. Based upon that evaluation, the CEO and CFO concluded that our disclosure controls and procedures were effective as of September 30, 2024, at a reasonable level of assurance, in recording, processing, summarizing and reporting information required to be disclosed within the time periods specified by the SEC rules and forms.

(b) Changes in Internal Control Over Financial Reporting

We regularly review our disclosure controls and procedures and make changes intended to ensure the quality of our financial reporting. There were no changes in internal control over financial reporting that occurred in the third quarter of 2024 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

147 Capital One Financial Corporation (COF)

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

The information required by Item 103 of Regulation S-K is included in “Part I—Item 1. Financial Statements—Note 14—Commitments, Contingencies, Guarantees and Others.”

Item 1A. Risk Factors

We are not aware of any material changes from the risk factors set forth under “Part I—Item 1A. Risk Factors” in our 2023 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table presents information related to the repurchases of shares of our common stock for each calendar month in the third quarter of 2024. Commission costs are excluded from the amounts presented below.

	Total Number of Shares Purchased(1)	Average Price  per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans(1)	Maximum Amount That May Yet be Purchased Under the Plan or Program(1) (in millions)
July	402,507	$	143.69	402,507	$	4,276
August	560,748	124.28		421,674	4,217
September	237,214	141.29		237,214	4,184
Total	1,200,469	136.61		1,061,395

(1) In April 2022, our Board of Directors authorized the repurchase of up to $5.0 billion of shares of our common stock. There were 139,074 shares withheld in August to cover taxes on restricted stock awards whose restrictions lapsed. See “Part I—Item 2. MD&A—Capital Management—Dividend Policy and Stock Purchases” for more information.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements

During the three months ended September 30, 2024, certain of our officers and directors adopted or terminated Rule 10b5-1 trading arrangements as follows:

Mark Daniel Mouadeb, our President, U.S. Card, entered into a pre-arranged stock trading plan on July 25, 2024. Mr. Mouadeb’s plan provides for the associated sale of up to 1,993.795 shares of Capital One common stock in amounts and prices set forth in the plan and terminates on the earlier of the date all shares under the plan are sold and December 31, 2024.

Robert M. Alexander, our Chief Information Officer, entered into a pre-arranged stock trading plan on August 8, 2024. Mr. Alexander’s plan provides for the associated sale of up to 16,594 shares of Capital One common stock in amounts and prices set forth in the plan and terminates on the earlier of the date all shares under the plan are sold and October 29, 2025.

Michael Zamsky, our Chief Credit and Financial Risk Officer, entered into a pre-arranged stock trading plan on August 13, 2024. Mr. Zamsky’s plan provides for the associated sale of up to 20,101 shares of Capital One common stock in amounts and prices set forth in the plan and terminates on the earlier of the date all shares under the plan are sold and May 12, 2025.

148 Capital One Financial Corporation (COF)

Each of the trading plans was entered into during an open insider trading window and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended, and Capital One’s policies regarding transactions in its securities.

Item 6. Exhibits

An index to exhibits has been filed as part of this Report and is incorporated herein by reference.

149 Capital One Financial Corporation (COF)

EXHIBIT INDEX

Exhibit No.	Description
2.1	Agreement and Plan of Merger, dated as of February 19, 2024, by and among Discover Financial Services, Capital One Financial Corporation and Vega Merger Sub, Inc. (incorporated by reference to Exhibit 2.1 of the Current Report on Form 8-K, filed on February 22, 2024).
3.1	Restated Certificate of Incorporation of Capital One Financial Corporation (as restated July 26, 2023) (incorporated by reference to Exhibit 3.1 of the Quarterly Report on Form 10-Q, filed on July 27, 2023).
3.2	Amended and Restated Bylaws of Capital One Financial Corporation, dated September 23, 2021 (incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K, filed on September 29, 2021).
4.1	Pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, copies of instruments defining the rights of holders of long-term debt are not filed. The Company agrees to furnish a copy thereof to the SEC upon request.
31.1*	Certification of Richard D. Fairbank.
31.2*	Certification of Andrew M. Young.
32.1**	Certification of Richard D. Fairbank.
32.2**	Certification of Andrew M. Young.
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL Document.
101.SCH*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	The cover page of Capital One Financial Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in Inline XBRL (included within the Exhibit 101 attachments).

__________

+	Represents a management contract or compensatory plan or arrangement.
*	Indicates a document being filed with this Form 10-Q.
**	Indicates a document being furnished with this Form 10-Q. Information in this Form 10-Q furnished herewith shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Such exhibit shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934.

150 Capital One Financial Corporation (COF)

SIGNATURES

Pursuant to the requirements of Section 13 of 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CAPITAL ONE FINANCIAL CORPORATION
Date: October 31, 2024	By:	/s/ ANDREW M. YOUNG
		Andrew M. Young
		Chief Financial Officer

151 Capital One Financial Corporation (COF)

EX-31.1

Exhibit 31.1

CERTIFICATION FOR QUARTERLY REPORT ON FORM 10-Q OF CAPITAL ONE FINANCIAL

CORPORATION AND CONSOLIDATED SUBSIDIARIES

I, Richard D. Fairbank, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 of Capital One Financial Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 31, 2024	By:	/s/ RICHARD D. FAIRBANK
			Richard D. Fairbank Chair and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION FOR QUARTERLY REPORT ON FORM 10-Q OF CAPITAL ONE FINANCIAL

CORPORATION AND CONSOLIDATED SUBSIDIARIES

I, Andrew M. Young, certify that,

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 of Capital One Financial Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 31, 2024	By:	/s/ ANDREW M. YOUNG
			Andrew M. Young Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), I, Richard D. Fairbank, Chairman and Chief Executive Officer of Capital One Financial Corporation (“Capital One”), a Delaware corporation , do hereby certify that:

1.The Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (the “Form 10-Q”) of Capital One fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Capital One.

Date:	October 31, 2024	By:	/s/ RICHARD D. FAIRBANK
			Richard D. Fairbank Chair and Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to Capital One and will be retained by Capital One and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), I, Andrew M. Young, Chief Financial Officer of Capital One Financial Corporation (“Capital One”), a Delaware corporation, do hereby certify that:

1.The Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (the “Form 10-Q”) of Capital One fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Capital One.

Date:	October 31, 2024	By:	/s/ ANDREW M. YOUNG
			Andrew M. Young Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Capital One and will be retained by Capital One and furnished to the Securities and Exchange Commission or its staff upon request.

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Trading Symbol	COF PRL
Security Exchange Name	NYSE
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series N
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series N
Trading Symbol	COF PRN
Security Exchange Name	NYSE
1.650% Senior Notes Due 2029
Entity Information [Line Items]
Title of 12(b) Security	1.650% Senior Notes Due 2029
Trading Symbol	COF29
Security Exchange Name	NYSE

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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest income:
Loans, including loans held for sale	$ 10,547	$ 9,696	$ 30,460	$ 27,476
Investment securities	733	627	2,120	1,881
Other	580	550	1,737	1,436
Total interest income	11,860	10,873	34,317	30,793
Interest expense:
Deposits	2,945	2,611	8,631	6,744
Securitized debt obligations	234	249	753	696
Senior and subordinated notes	596	579	1,793	1,596
Other borrowings	9	11	30	35
Total interest expense	3,784	3,450	11,207	9,071
Net interest income	8,076	7,423	23,110	21,722
Provision for credit losses	2,482	2,284	9,074	7,569
Net interest income after provision for credit losses	5,594	5,139	14,036	14,153
Non-interest income:
Interchange fees, net	1,228	1,234	3,622	3,586
Service charges and other customer-related fees	501	453	1,422	1,243
Net securities gains (losses)	(35)	0	(35)	0
Other	244	256	803	730
Total non-interest income (loss)	1,938	1,943	5,812	5,559
Non-interest expense:
Salaries and associate benefits	2,391	2,274	7,069	7,018
Occupancy and equipment	587	518	1,692	1,532
Marketing	1,113	972	3,187	2,755
Professional services	402	295	980	909
Communications and data processing	358	344	1,064	1,038
Amortization of intangibles	20	24	58	60
Other	443	433	1,347	1,287
Total non-interest expense	5,314	4,860	15,397	14,599
Income from continuing operations before income taxes	2,218	2,222	4,451	5,113
Income tax provision	441	432	797	932
Net income	1,777	1,790	3,654	4,181
Dividends and undistributed earnings allocated to participating securities	(28)	(28)	(60)	(67)
Preferred stock dividends	(57)	(57)	(171)	(171)
Net income available to common stockholders	$ 1,692	$ 1,705	$ 3,423	$ 3,943
Basic earnings per common share:
Net income per basic common share (in dollars per share)	$ 4.42	$ 4.46	$ 8.94	$ 10.31
Diluted earnings per common share:
Net income per diluted common share (in dollars per share)	$ 4.41	$ 4.45	$ 8.92	$ 10.28

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 1,777			$ 1,790			$ 3,654	$ 4,181
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale	2,300			(2,108)			1,272	(2,034)
Net unrealized gains (losses) on hedging relationships	1,069			(259)			677	(282)
Foreign currency translation adjustments	45			(39)			31	8
Other	0			0			1	0
Other comprehensive income (loss), net of tax	3,414			(2,406)			1,981	(2,308)
Comprehensive income (loss)	$ 5,191	$ 430	$ 14	$ (616)	$ 153	$ 2,336	$ 5,635	$ 1,873

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CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Cash and cash equivalents:
Cash and due from banks	$ 3,976	$ 4,903
Interest-bearing deposits and other short-term investments	45,322	38,394
Total cash and cash equivalents	49,298	43,297
Restricted cash for securitization investors	421	458
Securities available for sale (amortized cost of $90.8 billion and $88.1 billion and allowance for credit losses of $3 million and $4 million as of September 30, 2024 and December 31, 2023, respectively)	83,500	79,117
Loans held for investment:
Total loans held for investment	320,243	320,472
Allowance for credit losses	(16,534)	(15,296)
Net loans held for investment	303,709	305,176
Loans held for sale ($77 million and $347 million carried at fair value as of September 30, 2024 and December 31, 2023, respectively)	96	854
Premises and equipment, net	4,440	4,375
Interest receivable	2,577	2,478
Goodwill	15,083	15,065
Other assets	27,309	27,644
Total assets	486,433	478,464
Liabilities:
Interest payable	705	649
Deposits:
Non-interest-bearing deposits	26,378	28,024
Interest-bearing deposits	327,253	320,389
Total deposits	353,631	348,413
Securitized debt obligations	15,881	18,043
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	520	538
Senior and subordinated notes	32,911	31,248
Other borrowings	24	27
Total other debt	33,455	31,813
Other liabilities	19,836	21,457
Total liabilities	423,508	420,375
Commitments, contingencies and guarantees (see Note 14)
Stockholders’ equity:
Preferred stock (par value $0.01 per share; 50,000,000 shares authorized; 4,975,000 shares issued and outstanding as of both September 30, 2024 and December 31, 2023)	0	0
Common stock (par value $0.01 per share; 1,000,000,000 shares authorized; 701,557,753 and 696,242,668 shares issued as of September 30, 2024 and December 31, 2023, respectively; 381,510,336 and 380,389,609 shares outstanding as of September 30, 2024 and December 31, 2023, respectively)	7	7
Additional paid-in capital, net	36,216	35,541
Retained earnings	63,698	60,945
Accumulated other comprehensive loss	(6,287)	(8,268)
Treasury stock, at cost (par value $0.01 per share; 320,047,417 and 315,853,059 shares as of September 30, 2024 and December 31, 2023, respectively)	(30,709)	(30,136)
Total stockholders’ equity	62,925	58,089
Total liabilities and stockholders’ equity	486,433	478,464
Unsecuritized loans held for investment
Loans held for investment:
Total loans held for investment	292,061	289,229
Loans held in consolidated trusts
Loans held for investment:
Total loans held for investment	28,182	31,243
Total assets	30,466	33,288
Other debt:
Total liabilities	$ 16,368	$ 18,746

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CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Securities available for sale, amortized cost	$ 90,771	$ 88,063
Allowance for credit losses	3	4
Loans held for sale	$ 77	$ 347
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	4,975,000	4,975,000
Preferred stock, shares outstanding (in shares)	4,975,000	4,975,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	701,557,753	696,242,668
Common stock, shares outstanding (in shares)	381,510,336	380,389,609
Treasury stock, par value (in dollars per share)	$ 0.01	$ 0.01
Treasury stock, shares (in shares)	320,047,417	315,853,059

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions		Total	Cumulative Effect, Period of Adoption, Adjustment		Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment		Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2022					4,975,000	690,334,422
Beginning balance at Dec. 31, 2022		$ 52,582	$ 48	[1]	$ 0	$ 7	$ 34,725	$ 57,184	$ 48	[1]	$ (9,916)	$ (29,418)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)		2,336						960			1,376
Dividends—common stock (in shares)	[2]					26,635
Dividends—common stock	[2]	(234)				$ 0	3	(237)
Dividends—preferred stock		(57)						(57)
Purchases of treasury stock		(246)										(246)
Issuances of common stock and restricted stock, net of forfeitures (in shares)						2,972,149
Issuances of common stock and restricted stock, net of forfeitures		76				$ 0	76
Compensation expense for restricted stock units		148					148
Ending balance (in shares) at Mar. 31, 2023					4,975,000	693,333,206
Ending balance at Mar. 31, 2023		54,653	(11)	[3]	$ 0	$ 7	34,952	57,898	(11)	[3]	(8,540)	(29,664)
Beginning balance (in shares) at Dec. 31, 2022					4,975,000	690,334,422
Beginning balance at Dec. 31, 2022		52,582	48	[1]	$ 0	$ 7	34,725	57,184	48	[1]	(9,916)	(29,418)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)		1,873
Ending balance (in shares) at Sep. 30, 2023					4,975,000	695,336,698
Ending balance at Sep. 30, 2023		53,668			$ 0	$ 7	35,334	60,529			(12,224)	(29,978)
Beginning balance (in shares) at Mar. 31, 2023					4,975,000	693,333,206
Beginning balance at Mar. 31, 2023		54,653	(11)	[3]	$ 0	$ 7	34,952	57,898	(11)	[3]	(8,540)	(29,664)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)		153						1,431			(1,278)
Dividends—common stock (in shares)	[2]					4,745
Dividends—common stock	[2]	(232)				$ 0	1	(233)
Dividends—preferred stock		(57)						(57)
Purchases of treasury stock		(157)										(157)
Issuances of common stock and restricted stock, net of forfeitures (in shares)						989,004
Issuances of common stock and restricted stock, net of forfeitures		88				$ 0	88
Compensation expense for restricted stock units		122					122
Ending balance (in shares) at Jun. 30, 2023					4,975,000	694,326,955
Ending balance at Jun. 30, 2023		54,559			$ 0	$ 7	35,163	59,028			(9,818)	(29,821)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)		(616)						1,790			(2,406)
Dividends—common stock (in shares)	[2]					4,078
Dividends—common stock	[2]	(232)				$ 0	0	(232)
Dividends—preferred stock		(57)						(57)
Purchases of treasury stock		(157)										(157)
Issuances of common stock and restricted stock, net of forfeitures (in shares)						943,409
Issuances of common stock and restricted stock, net of forfeitures		71				$ 0	71
Exercises of stock options (in shares)						62,256
Exercises of stock options		4				$ 0	4
Compensation expense for restricted stock units		96					96
Ending balance (in shares) at Sep. 30, 2023					4,975,000	695,336,698
Ending balance at Sep. 30, 2023		53,668			$ 0	$ 7	35,334	60,529			(12,224)	(29,978)
Beginning balance (in shares) at Dec. 31, 2023					4,975,000	696,242,668
Beginning balance at Dec. 31, 2023		58,089	(25)	[4]	$ 0	$ 7	35,541	60,945	(25)	[4]	(8,268)	(30,136)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)		14						1,280			(1,266)
Dividends—common stock (in shares)	[2]					24,969
Dividends—common stock	[2]	(235)				$ 0	3	(238)
Dividends—preferred stock		(57)						(57)
Purchases of treasury stock		(249)										(249)
Issuances of common stock and restricted stock, net of forfeitures (in shares)						3,470,983
Issuances of common stock and restricted stock, net of forfeitures		80				$ 0	80
Exercises of stock options (in shares)						15,000
Exercises of stock options		1				$ 0	1
Compensation expense for restricted stock units		183					183
Ending balance (in shares) at Mar. 31, 2024					4,975,000	699,753,620
Ending balance at Mar. 31, 2024		57,801			$ 0	$ 7	35,808	61,905			(9,534)	(30,385)
Beginning balance (in shares) at Dec. 31, 2023					4,975,000	696,242,668
Beginning balance at Dec. 31, 2023		58,089	$ (25)	[4]	$ 0	$ 7	35,541	60,945	$ (25)	[4]	(8,268)	(30,136)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)		5,635
Ending balance (in shares) at Sep. 30, 2024					4,975,000	701,557,753
Ending balance at Sep. 30, 2024		62,925			$ 0	$ 7	36,216	63,698			(6,287)	(30,709)
Beginning balance (in shares) at Mar. 31, 2024					4,975,000	699,753,620
Beginning balance at Mar. 31, 2024		57,801			$ 0	$ 7	35,808	61,905			(9,534)	(30,385)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)		430						597			(167)
Dividends—common stock (in shares)	[2]					8,354
Dividends—common stock	[2]	(232)				$ 0	2	(234)
Dividends—preferred stock		(57)						(57)
Purchases of treasury stock		(163)										(163)
Issuances of common stock and restricted stock, net of forfeitures (in shares)						941,120
Issuances of common stock and restricted stock, net of forfeitures		95				$ 0	95
Compensation expense for restricted stock units		107					107
Ending balance (in shares) at Jun. 30, 2024					4,975,000	700,703,094
Ending balance at Jun. 30, 2024		57,981			$ 0	$ 7	36,012	62,211			(9,701)	(30,548)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)		5,191						1,777			3,414
Dividends—common stock (in shares)	[2]					2,846
Dividends—common stock	[2]	(233)				$ 0	0	(233)
Dividends—preferred stock		(57)						(57)
Purchases of treasury stock		(161)										(161)
Issuances of common stock and restricted stock, net of forfeitures (in shares)						691,072
Issuances of common stock and restricted stock, net of forfeitures		76				$ 0	76
Exercises of stock options (in shares)						160,741
Exercises of stock options		3				$ 0	3
Compensation expense for restricted stock units		125					125
Ending balance (in shares) at Sep. 30, 2024					4,975,000	701,557,753
Ending balance at Sep. 30, 2024		$ 62,925			$ 0	$ 7	$ 36,216	$ 63,698			$ (6,287)	$ (30,709)

[1] Impact from the adoption of ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures as of January 1, 2023.

[2] We declared dividends per share on our common stock of $0.60 in the third quarter of 2024 and 2023, and $1.80 in the first nine months of 2024 and 2023.

[3] We have equity method investments in certain non-public entities which adopted ASU 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) as of January 1, 2023. The impact to retained earnings was recorded in the second quarter of 2023, on a one quarter lag consistent with our standard operating procedures for equity method investments.

[4] Impact from the adoption of Accounting Standards Update (“ASU”) 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method as of January 1, 2024.

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Stockholders' Equity [Abstract]
Dividend per share on common stock declared (in dollars per share)	$ 0.60	$ 0.60	$ 1.80	$ 1.80

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating activities:
Income from continuing operations, net of tax	$ 3,654,000,000	$ 4,181,000,000
Net income	3,654,000,000	4,181,000,000
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	9,074,000,000	7,569,000,000
Depreciation and amortization, net	2,423,000,000	2,428,000,000
Deferred tax benefit	(501,000,000)	(513,000,000)
Net securities losses	35,000,000	0
Loss on sales of loans	27,000,000	1,000,000
Stock-based compensation expense	425,000,000	372,000,000
Other	37,000,000	(46,000,000)
Loans held for sale:
Originations and purchases	(2,603,000,000)	(3,990,000,000)
Proceeds from sales and paydowns	2,887,000,000	3,847,000,000
Changes in operating assets and liabilities:
Changes in interest receivable	(99,000,000)	(350,000,000)
Changes in other assets	913,000,000	(483,000,000)
Changes in interest payable	56,000,000	158,000,000
Changes in other liabilities	(617,000,000)	301,000,000
Net cash from operating activities	15,711,000,000	13,475,000,000
Securities available for sale:
Purchases	(11,677,000,000)	(7,334,000,000)
Proceeds from paydowns and maturities	8,732,000,000	6,663,000,000
Proceeds from sales	175,000,000	0
Net changes in loans originated as held for investment	(9,984,000,000)	(8,827,000,000)
Principal recoveries of loans previously charged off	2,197,000,000	1,715,000,000
Changes in premises and equipment	(848,000,000)	(700,000,000)
Net cash used in acquisitions	0	(2,785,000,000)
Net cash used in other investing activities	(756,000,000)	(962,000,000)
Net cash used in investing activities	(12,161,000,000)	(12,230,000,000)
Financing activities:
Changes in deposits	4,987,000,000	13,080,000,000
Issuance of securitized debt obligations	997,000,000	2,443,000,000
Maturities and paydowns of securitized debt obligations	(3,434,000,000)	(2,003,000,000)
Issuance of senior and subordinated notes	3,985,000,000	5,728,000,000
Maturities and paydowns of senior and subordinated notes	(2,911,000,000)	(4,886,000,000)
Changes in other borrowings	(21,000,000)	(369,000,000)
Common stock:
Net proceeds from issuances	251,000,000	235,000,000
Dividends paid	(700,000,000)	(698,000,000)
Preferred stock:
Dividends paid	(171,000,000)	(171,000,000)
Purchases of treasury stock	(573,000,000)	(560,000,000)
Proceeds from share-based payment activities	4,000,000	4,000,000
Net cash from financing activities	2,414,000,000	12,803,000,000
Changes in cash, cash equivalents and restricted cash for securitization investors	5,964,000,000	14,048,000,000
Cash, cash equivalents and restricted cash for securitization investors, beginning of the period	43,755,000,000	31,256,000,000
Cash, cash equivalents and restricted cash for securitization investors, end of the period	49,719,000,000	45,304,000,000
Supplemental cash flow information:
Interest paid	9,831,000,000	10,196,000,000
Income tax paid	$ 563,000,000	$ 871,000,000

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company

Capital One Financial Corporation, a Delaware corporation established in 1994 and headquartered in McLean, Virginia, is a diversified financial services holding company with banking and non-banking subsidiaries. Capital One Financial Corporation and its subsidiaries (the “Company” or “Capital One”) offer a broad array of financial products and services to consumers, small businesses and commercial clients through digital channels, branch locations, cafés and other distribution channels.

As of September 30, 2024, Capital One Financial Corporation’s principal operating subsidiary was Capital One, National Association (“CONA”). The Company is hereafter collectively referred to as “we,” “us” or “our.” CONA is referred to as the “Bank.”

We also offer products outside of the United States of America (“U.S.”) principally through Capital One (Europe) plc (“COEP”), an indirect subsidiary of CONA organized and located in the United Kingdom (“U.K.”), and through a branch of CONA in Canada. Both COEP and our Canadian branch of CONA have the authority to provide credit card loans.

Our principal operations are organized for management reporting purposes into three major business segments, which are defined primarily based on the products and services provided or the types of customer served: Credit Card, Consumer Banking and Commercial Banking. We provide details on our business segments, the integration of any recent material acquisitions into our business segments, and the allocation methodologies and accounting policies used to derive our business segment results in “Note 13—Business Segments and Revenue from Contracts with Customers.”

Basis of Presentation and Use of Estimates

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information.

These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, and related notes thereto, included in Capital One Financial Corporation’s 2023 Annual Report on Form 10-K (“2023 Form 10-K”).

Newly Adopted Accounting Standards During the Nine Months Ended September 30, 2024

Standard	Guidance	Adoption Timing and Financial Statement Impacts
Tax Credit Investments ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023	Permits entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method, if certain criteria are met. Previously, only Low-Income Housing Tax Credit investments were eligible for application of the proportional amortization method.	We adopted this standard on its effective date of January 1, 2024 using a modified retrospective transition method, which results in a cumulative-effect adjustment to retained earnings in the period of adoption. Our adoption of this standard did not have a material impact on our consolidated financial statements. See “Consolidated Statements of Changes in Stockholders’ Equity” and “Note 6—Variable Interest Entities and Securitizations” for additional disclosures.

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Business Combinations

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Business Combinations

NOTE 2—BUSINESS COMBINATIONS

On February 19, 2024, the Company entered into an agreement and plan of merger (the “Merger Agreement”), by and among Capital One, Discover Financial Services, a Delaware corporation (“Discover”) and Vega Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of the Company (“Merger Sub”), pursuant to which (a) Merger Sub will merge with and into Discover, with Discover as the surviving entity in the merger (the “Merger”); (b) immediately following the Merger, Discover, as the surviving entity, will merge with and into Capital One, with Capital One as the surviving entity in the second-step merger (the “Second Step Merger”); and (c) immediately following the Second Step Merger, Discover Bank, a Delaware-chartered and wholly owned subsidiary of Discover, will merge with and into CONA, with CONA as the surviving entity in the merger (the “CONA Bank Merger,” and collectively with the Merger and the Second Step Merger, the “Transaction”). The Merger Agreement was unanimously approved by the Boards of Directors of each of Capital One and Discover.

At the effective time of the Merger, each share of common stock of Discover outstanding immediately prior to the effective time of the Merger, other than certain shares held by Discover or Capital One, will be converted into the right to receive 1.0192 shares of common stock of Capital One. Holders of Discover common stock will receive cash in lieu of fractional shares. At the effective time of the Second Step Merger, each share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, of Discover, and each share of 6.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D, of Discover, in each case outstanding immediately prior to the effective time of the Second Step Merger, will be converted into the right to receive a share of newly created series of preferred stock of Capital One having terms that are not materially less favorable than the applicable series of Discover preferred stock. The closing of the Transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals and approval by the stockholders of each of Capital One and Discover.

For the three and nine months ended September 30, 2024, we have incurred $63 million and $94 million of integration expenses related to the agreement to acquire Discover, which are included in Operating Expense in our Consolidated Statements of Income.

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Investment Securities

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Investment Securities

NOTE 3—INVESTMENT SECURITIES

Our investment securities portfolio consists of the following: U.S. government-sponsored enterprise or agency (“GSE” or “Agency”) and non-agency residential mortgage-backed securities (“RMBS”), agency commercial mortgage-backed securities (“CMBS”), U.S. Treasury securities and other securities. Agency securities include Government National Mortgage Association (“Ginnie Mae”) guaranteed securities, Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) issued securities. The carrying value of our investments in Agency and U.S. Treasury securities represented 96% and 97% of our total investment securities portfolio as of September 30, 2024 and December 31, 2023, respectively.

The table below presents the amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value aggregated by major security type as of September 30, 2024 and December 31, 2023. Accrued interest receivable of $264 million and $227 million as of September 30, 2024 and December 31, 2023, respectively, is not included in the table below.

Table 3.1: Investment Securities Available for Sale

	September 30, 2024
(Dollars in millions)	Amortized Cost		Allowance  for Credit  Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Investment securities available for sale:
U.S. Treasury securities	$	6,035	$	0	$	10	$	(13)	$	6,032
RMBS:
Agency	72,576		0		205		(7,130)		65,651
Non-agency	576		(3)		86		(3)		656
Total RMBS	73,152		(3)		291		(7,133)		66,307
Agency CMBS	8,613		0		35		(465)		8,183
Other securities(1)	2,971		0		7		0		2,978
Total investment securities available for sale	$	90,771	$	(3)	$	343	$	(7,611)	$	83,500

	December 31, 2023
(Dollars in millions)	Amortized Cost		Allowance  for Credit  Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Investment securities available for sale:
U.S. Treasury securities	$	5,330	$	0	$	1	$	(49)	$	5,282
RMBS:
Agency	71,294		0		104		(8,450)		62,948
Non-agency	610		(4)		89		(5)		690
Total RMBS	71,904		(4)		193		(8,455)		63,638
Agency CMBS	8,961		0		14		(652)		8,323
Other securities(1)	1,868		0		6		0		1,874
Total investment securities available for sale	$	88,063	$	(4)	$	214	$	(9,156)	$	79,117

__________    

(1)Includes $2.4 billion and $1.4 billion of asset-backed securities (“ABS”) as of September 30, 2024 and December 31, 2023, respectively. The remaining amount is primarily comprised of supranational bonds, foreign government bonds and U.S. agency debt bonds.

Investment Securities in a Gross Unrealized Loss Position

The table below provides the gross unrealized losses and fair value of our securities available for sale aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2024 and December 31, 2023. The amounts include securities available for sale without an allowance for credit losses.

Table 3.2: Securities in a Gross Unrealized Loss Position

	September 30, 2024
	Less than 12 Months				12 Months or Longer				Total
(Dollars in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Investment securities available for sale without an allowance for credit losses:
U.S. Treasury securities	$	3,772	$	(4)	$	1,331	$	(9)	$	5,103	$	(13)
RMBS:
Agency	1,807		(10)		52,413		(7,120)		54,220		(7,130)
Non-agency	4		0		10		0		14		0
Total RMBS	1,811		(10)		52,423		(7,120)		54,234		(7,130)
Agency CMBS	192		(1)		5,966		(464)		6,158		(465)
Other securities	776		0		4		0		780		0
Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(1)	$	6,551	$	(15)	$	59,724	$	(7,593)	$	66,275	$	(7,608)

	December 31, 2023
	Less than 12 Months				12 Months or Longer				Total
(Dollars in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Investment securities available for sale without an allowance for credit losses:
U.S. Treasury securities	$	733	$	0	$	2,242	$	(49)	$	2,975	$	(49)
RMBS:
Agency	3,511		(43)		53,987		(8,407)		57,498		(8,450)
Non-agency	1		0		13		(1)		14		(1)
Total RMBS	3,512		(43)		54,000		(8,408)		57,512		(8,451)
Agency CMBS	547		(7)		6,465		(645)		7,012		(652)
Other securities	276		0		4		0		280		0
Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(1)	$	5,068	$	(50)	$	62,711	$	(9,102)	$	67,779	$	(9,152)

__________

(1)    Consists of approximately 2,500 and 2,740 securities in gross unrealized loss positions as of September 30, 2024 and December 31, 2023, respectively.

Maturities and Yields of Investment Securities

The table below summarizes, as of September 30, 2024, the fair value of our investment securities by major security type and contractual maturity as well as the total fair value, amortized cost and weighted-average yields of our investment securities by contractual maturity. Since borrowers may have the right to call or prepay certain obligations, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. The weighted-average yield below represents the effective yield for the investment securities presented on a pre-tax basis and is calculated based on the amortized cost of each security, inclusive of the contractual coupon, the impact of any premium amortization or discount accretion and any hedge accounting relationships.

Table 3.3: Contractual Maturities and Weighted-Average Yields of Securities

	September 30, 2024
(Dollars in millions)	Due in 1 Year or Less		Due > 1 Year through 5 Years		Due > 5 Years through 10 Years		Due > 10 Years		Total
Fair value of securities available for sale:
U.S. Treasury securities	$	3,334	$	1,254	$	1,444	$	0	$	6,032
RMBS(1):
Agency	1		74		1,099		64,477		65,651
Non-agency	0		0		12		644		656
Total RMBS	1		74		1,111		65,121		66,307
Agency CMBS(1)	515		2,930		2,758		1,980		8,183
Other securities	344		2,617		17		0		2,978
Total securities available for sale	$	4,194	$	6,875	$	5,330	$	67,101	$	83,500
Amortized cost of securities available for sale	$	4,204	$	6,980	$	5,569	$	74,018	$	90,771
Weighted-average yield for securities available for sale	4.74%		4.07%		3.89%		3.16%		3.35%

__________

(1)As of September 30, 2024, the weighted-average expected maturities of RMBS and Agency CMBS were 7.4 years and 4.9 years, respectively.

Net Securities Gains or Losses and Proceeds from Sales

For the three and nine months ended September 30, 2024, total proceeds from sales of our securities were $175 million with losses of $35 million. We had no sales of securities for the three and nine months ended September 30, 2023.

Securities Pledged and Received

We pledged investment securities totaling $40.1 billion and $45.1 billion as of September 30, 2024 and December 31, 2023, respectively. These securities are primarily pledged to support our access to FHLB advances and Public Fund Deposits, as well as for other purposes as required or permitted by law. We accepted pledges of securities with a fair value of approximately $11 million and $16 million as of September 30, 2024 and December 31, 2023, respectively, related to our derivative transactions.

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Loans

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Loans

NOTE 4—LOANS

Our loan portfolio consists of loans held for investment, including loans held in our consolidated trusts, and loans held for sale. We further divide our loans held for investment into three portfolio segments: Credit Card, Consumer Banking and Commercial Banking. Credit card loans consist of domestic and international credit card loans. Consumer banking loans consist of auto and retail banking loans. Commercial banking loans consist of commercial and multifamily real estate as well as commercial and industrial loans. The information presented in the tables in this note excludes loans held for sale, which are carried at either fair value (if we elect the fair value option) or at the lower of cost or fair value.

Accrued interest receivable of $2.2 billion as of both September 30, 2024 and December 31, 2023, is not included in the tables in this note. The table below presents the composition and aging analysis of our loans held for investment portfolio as of September 30, 2024 and December 31, 2023. The delinquency aging includes all past due loans, both performing and nonperforming.

Table 4.1: Loan Portfolio Composition and Aging Analysis

	September 30, 2024
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	142,633	$	1,982	$	1,469	$	3,316	$	6,767	$	149,400
International card businesses	6,914		116		75		146		337		7,251
Total credit card	149,547		2,098		1,544		3,462		7,104		156,651
Consumer Banking:
Auto	70,682		2,895		1,452		476		4,823		75,505
Retail banking	1,229		13		2		9		24		1,253
Total consumer banking	71,911		2,908		1,454		485		4,847		76,758
Commercial Banking:
Commercial and multifamily real estate	32,016		114		20		49		183		32,199
Commercial and industrial	54,320		114		54		147		315		54,635
Total commercial banking	86,336		228		74		196		498		86,834
Total loans(1)	$	307,794	$	5,234	$	3,072	$	4,143	$	12,449	$	320,243
% of Total loans	96.11%		1.64%		0.96%		1.29%		3.89%		100.00%

    

	December 31, 2023
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	140,860	$	1,968	$	1,471	$	3,367	$	6,806	$	147,666
International card businesses	6,552		116		76		137		329		6,881
Total credit card	147,412		2,084		1,547		3,504		7,135		154,547
Consumer Banking:
Auto	68,768		3,268		1,555		484		5,307		74,075
Retail banking	1,329		15		3		15		33		1,362
Total consumer banking	70,097		3,283		1,558		499		5,340		75,437

	December 31, 2023
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Commercial Banking:
Commercial and multifamily real estate	34,325		0		14		107		121		34,446
Commercial and industrial	55,861		0		0		181		181		56,042
Total commercial banking	90,186		0		14		288		302		90,488
Total loans(1)	$	307,695	$	5,367	$	3,119	$	4,291	$	12,777	$	320,472
% of Total loans	96.01%		1.68%		0.97%		1.34%		3.99%		100.00%

__________

(1)Loans include unamortized premiums, discounts, and deferred fees and costs totaling $1.3 billion and $1.4 billion as of September 30, 2024 and December 31, 2023, respectively.

The following table presents our loans held for investment that are 90 days or more past due that continue to accrue interest, loans that are classified as nonperforming and loans that are classified as nonperforming without an allowance as of September 30, 2024 and December 31, 2023. Nonperforming loans generally include loans that have been placed on nonaccrual status.

Table 4.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans

	September 30, 2024									December 31, 2023
(Dollars in millions)	> 90 Days and Accruing			Nonperforming Loans(1)			Nonperforming  Loans Without an Allowance			> 90 Days and Accruing			Nonperforming Loans(1)			Nonperforming  Loans Without an Allowance
Credit Card:
Domestic credit card	$	3,316		N/A			$	0		$	3,367		N/A			$	0
International card businesses	140			$	11		0			132			$	9		0
Total credit card	3,456			11			0			3,499			9			0
Consumer Banking:
Auto	0			685			0			0			712			0
Retail banking	0			27			14			0			46			19
Total consumer banking	0			712			14			0			758			19
Commercial Banking:
Commercial and multifamily real estate	0			630			314			0			425			335
Commercial and industrial	0			718			552			55			336			193
Total commercial banking	0			1,348			866			55			761			528
Total	$	3,456		$	2,071		$	880		$	3,554		$	1,528		$	547
% of Total loans held for investment	1.08		%	0.65		%	0.27		%	1.11		%	0.48		%	0.17		%

__________

(1)We recognized interest income for loans classified as nonperforming of $6 million and $70 million for the three and nine months ended September 30, 2024, respectively, and $11 million and $47 million for the three and nine months ended September 30, 2023, respectively

Credit Quality Indicators

We closely monitor economic conditions and loan performance trends to assess and manage our exposure to credit risk. We discuss these risks and our credit quality indicator for each portfolio segment below.

Credit Card

Our credit card loan portfolio is highly diversified across millions of accounts and numerous geographies without significant individual exposure. We therefore generally manage credit risk based on portfolios with common risk characteristics. The risk in our credit card loan portfolio correlates to broad economic trends, such as the U.S. unemployment rate and U.S. Real Gross Domestic Product (“GDP”) growth rate, as well as consumers’ financial condition, all of which can have a material effect on credit performance. The key indicator we assess in monitoring the credit quality and risk of our credit card loan portfolio is delinquency trends, including an analysis of loan migration between delinquency categories over time.

The table below presents our credit card portfolio by delinquency status as of September 30, 2024 and December 31, 2023.

Table 4.3: Credit Card Delinquency Status

	September 30, 2024						December 31, 2023
(Dollars in millions)	Revolving Loans		Revolving Loans Converted to Term		Total		Revolving Loans		Revolving Loans Converted to Term		Total
Credit Card:
Domestic credit card:
Current	$	142,201	$	432	$	142,633	$	140,521	$	339	$	140,860
30-59 days	1,952		30		1,982		1,940		28		1,968
60-89 days	1,450		19		1,469		1,454		17		1,471
Greater than 90 days	3,289		27		3,316		3,339		28		3,367
Total domestic credit card	148,892		508		149,400		147,254		412		147,666
International card businesses:
Current	6,877		37		6,914		6,521		31		6,552
30-59 days	111		5		116		112		4		116
60-89 days	71		4		75		72		4		76
Greater than 90 days	142		4		146		132		5		137
Total international card businesses	7,201		50		7,251		6,837		44		6,881
Total credit card	$	156,093	$	558	$	156,651	$	154,091	$	456	$	154,547

Consumer Banking

Our consumer banking loan portfolio consists of auto and retail banking loans. Similar to our credit card loan portfolio, the risk in our consumer banking loan portfolio correlates to broad economic trends as well as consumers’ financial condition, all of which can have a material effect on credit performance. The key indicator we consider when assessing the credit quality and risk of our auto loan portfolio is borrower credit scores as they measure the creditworthiness of borrowers. Delinquency trends are the key indicator we assess in monitoring the credit quality and risk of our retail banking loan portfolio.

The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of September 30, 2024 and December 31, 2023. We present our auto loan portfolio by Fair Isaac Corporation (“FICO”) scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming.

Table 4.4: Consumer Banking Portfolio by Vintage Year

	September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Auto—At origination FICO scores:(1)
Greater than 660	$	12,790	$	9,219	$	9,214	$	6,501	$	1,832	$	578	$	40,134	$	0	$	0	$	40,134
621-660	4,316		3,827		3,262		2,291		811		330		14,837		0		0		14,837
620 or below	6,045		5,331		4,071		2,935		1,453		699		20,534		0		0		20,534
Total auto	23,151		18,377		16,547		11,727		4,096		1,607		75,505		0		0		75,505
Retail banking—Delinquency status:
Current	113		78		92		52		54		494		883		342		4		1,229
30-59 days	0		0		0		0		0		2		2		11		0		13
60-89 days	0		0		0		0		0		0		0		2		0		2
Greater than 90 days	0		0		0		0		1		7		8		1		0		9
Total retail banking	113		78		92		52		55		503		893		356		4		1,253
Total consumer banking	$	23,264	$	18,455	$	16,639	$	11,779	$	4,151	$	2,110	$	76,398	$	356	$	4	$	76,758

	December 31, 2023
	Term Loans by Vintage Year
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Auto—At origination FICO scores:(1)
Greater than 660	$	12,219	$	12,593	$	9,505	$	3,124	$	1,213	$	309	$	38,963	$	0	$	0	$	38,963
621-660	4,863		4,432		3,346		1,337		592		192		14,762		0		0		14,762
620 or below	6,647		5,539		4,283		2,349		1,131		401		20,350		0		0		20,350
Total auto	23,729		22,564		17,134		6,810		2,936		902		74,075		0		0		74,075
Retail banking—Delinquency status:
Current	98		157		57		65		117		468		962		363		4		1,329
30-59 days	1		0		1		1		0		1		4		11		0		15
60-89 days	0		0		0		0		0		1		1		2		0		3
Greater than 90 days	0		0		0		0		0		8		8		6		1		15
Total retail banking	99		157		58		66		117		478		975		382		5		1,362
Total consumer banking	$	23,828	$	22,721	$	17,192	$	6,876	$	3,053	$	1,380	$	75,050	$	382	$	5	$	75,437

__________

(1)Amounts 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.

Commercial Banking

The key credit quality indicator for our commercial loan portfolios is our internal risk ratings. We assign internal risk ratings to loans based on relevant information about the ability of the borrowers to repay their debt. In determining the risk rating of a particular loan, some of the factors considered are the borrower’s current financial condition, historical and projected future credit performance, prospects for support from financially responsible guarantors, the estimated realizable value of any collateral and current economic trends. The scale based on our internal risk rating system is as follows:

•Noncriticized: Loans that have not been designated as criticized, frequently referred to as “pass” loans.

•Criticized performing: Loans in which the financial condition of the obligor is stressed, affecting earnings, cash flows or collateral values. The borrower currently has adequate capacity to meet near-term obligations; however, the stress, left unabated, may result in deterioration of the repayment prospects at some future date.

•Criticized nonperforming: Loans that are not adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as criticized nonperforming have a well-defined weakness, or weaknesses, which jeopardize the full repayment of the debt. These loans are characterized by the distinct possibility that we will sustain a credit loss if the deficiencies are not corrected and are generally placed on nonaccrual status.

We use our internal risk rating system for regulatory reporting, determining the frequency of credit exposure reviews, and evaluating and determining the allowance for credit losses. Generally, loans that are designated as criticized performing and criticized nonperforming are reviewed quarterly by management to determine if they are appropriately classified/rated and whether any impairment exists. Noncriticized loans are also generally reviewed, at least annually, to determine the appropriate risk rating. In addition, we evaluate the risk rating during the renewal process of any loan or if a loan becomes past due.

The following table presents our commercial banking portfolio of loans held for investment by internal risk ratings as of September 30, 2024 and December 31, 2023. The internal risk rating status includes all past due loans, both performing and nonperforming.

Table 4.5: Commercial Banking Portfolio by Internal Risk Ratings

	September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	1,262	$	2,300	$	3,643	$	2,265	$	965	$	5,096	$	15,531	$	12,591	$	50	$	28,172
Criticized performing	53		91		1,525		294		128		1,048		3,139		161		97		3,397
Criticized nonperforming	23		0		14		141		83		341		602		28		0		630
Total commercial and multifamily real estate	1,338		2,391		5,182		2,700		1,176		6,485		19,272		12,780		147		32,199
Commercial and industrial
Noncriticized	4,106		6,046		10,197		5,770		2,762		7,001		35,882		14,637		144		50,663
Criticized performing	6		193		781		811		118		367		2,276		978		0		3,254
Criticized nonperforming	62		13		128		17		189		120		529		189		0		718
Total commercial and industrial	4,174		6,252		11,106		6,598		3,069		7,488		38,687		15,804		144		54,635
Total commercial banking	$	5,512	$	8,643	$	16,288	$	9,298	$	4,245	$	13,973	$	57,959	$	28,584	$	291	$	86,834

	December 31, 2023
	Term Loans by Vintage Year
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	3,068	$	4,665	$	2,773	$	1,019	$	2,104	$	3,670	$	17,299	$	12,565	$	25	$	29,889
Criticized performing	148		1,494		706		284		463		904		3,999		133		0		4,132
Criticized nonperforming	65		26		124		0		47		163		425		0		0		425
Total commercial and multifamily real estate	3,281		6,185		3,603		1,303		2,614		4,737		21,723		12,698		25		34,446
Commercial and industrial
Noncriticized	6,909		11,935		6,994		3,566		2,359		5,117		36,880		14,822		167		51,869
Criticized performing	353		706		655		237		348		349		2,648		1,189		0		3,837
Criticized nonperforming	13		53		30		18		123		68		305		31		0		336
Total commercial and industrial	7,275		12,694		7,679		3,821		2,830		5,534		39,833		16,042		167		56,042
Total commercial banking	$	10,556	$	18,879	$	11,282	$	5,124	$	5,444	$	10,271	$	61,556	$	28,740	$	192	$	90,488

__________

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

Financial Difficulty Modifications to Borrowers

As part of our loss mitigation efforts, we may provide short-term (one to twelve months) or long-term (greater than twelve months) modifications to a borrower experiencing financial difficulty to improve long-term collectability of the loan and to avoid the need for repossession or foreclosure of collateral.

We consider the impact of all loan modifications when estimating the credit quality of our loan portfolio and establishing allowance levels. For our Commercial Banking customers, loan modifications are also considered in the assignment of an internal risk rating.

For additional information on Financial Difficulty Modifications (“FDMs”), see “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K.

The following tables present the major modification types, amortized cost amounts for each modification type and financial effects for all FDMs undertaken during the three and nine months ended September 30, 2024 and 2023.

Table 4.6: Financial Difficulty Modifications to Borrowers

	Three Months Ended September 30, 2024
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	173		$	60		$	233		—			—			—			—			$	9		$	9		$	242
Term extension	—			—			—			$	10		$	3		$	13		$	286		432			718			731
Principal balance reduction	—			—			—			9			—			9			—			—			—			9
Interest rate reduction and term extension	5			—			5			258			—			258			—			1			1			264
Other(1)	—			—			—			2			—			2			21			31			52			54
Total loans modified	$	178		$	60		$	238		$	279		$	3		$	282		$	307		$	473		$	780		$	1,300
% of total class of receivables	0.12		%	0.83		%	0.15		%	0.37		%	0.22		%	0.37		%	0.96		%	0.87		%	0.90		%	0.41		%

	Nine Months Ended September 30, 2024
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	472		$	113		$	585		—			—			—			—			$	9		$	9		$	594
Term extension	—			—			—			$	17		$	4		$	21		$	513		695			1,208			1,229
Principal balance reduction	—			—			—			19			—			19			—			15			15			34
Interest rate reduction and term extension	8			—			8			573			—			573			—			7			7			588
Other(1)	—			—			—			3			1			4			159			117			276			280
Total loans modified	$	480		$	113		$	593		$	612		$	5		$	617		$	672		$	843		$	1,515		$	2,725
% of total class of receivables	0.32		%	1.56		%	0.38		%	0.81		%	0.42		%	0.80		%	2.09		%	1.54		%	1.74		%	0.85		%

	Three Months Ended September 30, 2023
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	200		$	42		$	242		—			—			—			—			—			—			$	242
Term extension	—			—			—			$	14		$	2		$	16		$	128		$	147		$	275		291
Principal balance reduction	—			—			—			8			—			8			—			—			—			8
Interest rate reduction and term extension	7			—			7			248			—			248			—			26			26			281
Other(1)	—			—			—			2			7			9			—			56			56			65
Total loans modified	$	207		$	42		$	249		$	272		$	9		$	281		$	128		$	229		$	357		$	887
% of total class of receivables	0.15		%	0.65		%	0.17		%	0.36		%	0.62		%	0.36		%	0.36		%	0.41		%	0.39		%	0.28		%

	Nine Months Ended September 30, 2023
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	437		$	76		$	513		—			—			—			—			—			—			$	513
Term extension	—			—			—			$	76		$	3		$	79		$	327		$	347		$	674		753
Principal balance reduction	—			—			—			17			—			17			—			—			—			17
Principal balance reduction and term extension	—			—			—			—			—			—			—			15			15			15
Interest rate reduction and term extension	10			—			10			504			—			504			—			26			26			540
Other(1)	—			—			—			3			7			10			54			151			205			215
Total loans modified	$	447		$	76		$	523		$	600		$	10		$	610		$	381		$	539		$	920		$	2,053
% of total class of receivables	0.32		%	1.17		%	0.36		%	0.79		%	0.75		%	0.79		%	1.07		%	0.97		%	1.01		%	0.65		%

__________

(1)Primarily consists of modifications or combinations of modifications not categorized above, such as increases in committed exposure, forbearances and other types of modifications in Commercial Banking.

Table 4.7: Financial Effects of Financial Difficulty Modifications to Borrowers

	Three Months Ended September 30, 2024
	Credit Card		Consumer Banking		Commercial Banking
(Dollars in millions)	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	20.49%	27.01%	8.83%	—%	—%	2.14%
Payment delay duration (in months)	12	—	6	25	18	18
Principal balance reduction	—	—	—	—	—	—

	Nine Months Ended September 30, 2024
	Credit Card		Consumer Banking		Commercial Banking
	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	20.19%	26.76%	8.78%	3.48%	0.79%	1.90%
Payment delay duration (in months)	12	—	6	4	11	16
Principal balance reduction	—	—	—	—	—	$15

	Three Months Ended September 30, 2023
	Credit Card		Consumer Banking		Commercial Banking
	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	19.40%	27.41%	8.67%	—%	—%	0.25%
Payment delay duration (in months)	12	—	6	8	11	17
Principal balance reduction	—	—	—	—	—	—

	Nine Months Ended September 30, 2023
	Credit Card		Consumer Banking		Commercial Banking
	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	19.19%	27.08%	8.74%	2.00%	—%	0.25%
Payment delay duration (in months)	12	—	6	13	15	9
Principal balance reduction	—	—	$1	—	$20	$3

Performance of Financial Difficulty Modifications to Borrowers

We monitor loan performance trends, including FDMs, to assess and manage our exposure to credit risk. See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for additional information on how the allowance for modified loans is calculated for each portfolio segment. FDMs are accumulated and the performance of each loan that received an FDM is reported on a rolling twelve month basis.

For the interim reporting period ended September 30, 2024, the delinquency status as of this date is shown in the table below for FDMs entered into over the preceding twelve month period. For the interim reporting period ended September 30, 2023, the delinquency status as of this date is shown in the table below for FDMs entered into during the first nine months of 2023.

Table 4.8 Delinquency Status of Financial Difficulty Modifications to Borrowers(1)

	September 30, 2024
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	423	$	60	$	45	$	88	$	193	$	616
International card businesses	68		12		11		37		60		128
Total credit card	491		72		56		125		253		744
Consumer Banking:
Auto	560		112		71		28		211		771
Retail banking	10		0		0		0		0		10
Total consumer banking	570		112		71		28		211		781
Commercial Banking:
Commercial and multifamily real estate	646		0		0		28		28		674
Commercial and industrial	768		74		4		65		143		911
Total commercial banking	1,414		74		4		93		171		1,585
Total	$	2,475	$	258	$	131	$	246	$	635	$	3,110

	September 30, 2023
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	283	$	65	$	40	$	59	$	164	$	447
International card businesses	35		8		8		25		41		76
Total credit card	318		73		48		84		205		523
Consumer Banking:
Auto	457		79		46		18		143		600
Retail banking	10		0		0		0		0		10
Total consumer banking	467		79		46		18		143		610
Commercial Banking:
Commercial and multifamily real estate	318		0		0		63		63		381
Commercial and industrial	417		4		0		118		122		539
Total commercial banking	735		4		0		181		185		920
Total	$	1,520	$	156	$	94	$	283	$	533	$	2,053

__________

(1)Commitments to lend additional funds on FDMs totaled $263 million and $75 million as of September 30, 2024 and 2023, respectively.

Subsequent Defaults of Financial Difficulty Modifications to Borrowers

FDMs may subsequently enter default. A default occurs if a FDM is either 90 days or more delinquent, has been charged off, or has been reclassified from accrual to nonaccrual status. Loans that entered a modification program while in default are not considered to have subsequently defaulted for purposes of this disclosure. The allowance for any FDMs that have subsequently defaulted is measured using the same methodology as the allowance for loans held for investment. See “Part II—Item 8.—Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for additional information.

The following table presents FDMs that entered subsequent default for the three and nine months ended September 30, 2024 and 2023.

Table 4.9 Subsequent Defaults of Financial Difficulty Modifications to Borrowers

	Three Months Ended September 30, 2024
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Other Modifications		Total Loans
Credit Card:
Domestic credit card	$	52	$	0	$	0	$	0	$	52
International card businesses	21		0		0		0		21
Total credit card	73		0		0		0		73
Consumer Banking:
Auto	0		1		110		0		111
Retail banking	0		0		0		0		0
Total consumer banking	0		1		110		0		111
Commercial Banking:
Commercial and multifamily real estate	0		103		0		28		131
Commercial and industrial	0		0		0		0		0
Total commercial banking	0		103		0		28		131
Total	$	73	$	104	$	110	$	28	$	315

	Nine Months Ended September 30, 2024
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Other Modifications		Total Loans
Credit Card:
Domestic credit card	$	179	$	0	$	2	$	0	$	181
International card businesses	56		0		0		0		56
Total credit card	235		0		2		0		237
Consumer Banking:
Auto	0		6		329		0		335
Retail banking	0		1		0		0		1
Total consumer banking	0		7		329		0		336
Commercial Banking:
Commercial and multifamily real estate	0		103		0		28		131
Commercial and industrial	0		125		0		255		380
Total commercial banking	0		228		0		283		511
Total	$	235	$	235	$	331	$	283	$	1,084

	Three Months Ended September 30, 2023
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total Loans
Credit Card:
Domestic credit card	$	17	$	0	$	0	$	17
International card businesses	6		0		0		6
Total credit card	23		0		0		23
Consumer Banking:
Auto	0		7		77		84
Total consumer banking	0		7		77		84
Commercial Banking:
Commercial and multifamily real estate	0		46		0		46
Commercial and industrial	0		51		0		51
Total commercial banking	0		97		0		97
Total	$	23	$	104	$	77	$	204

	Nine Months Ended September 30, 2023
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total Loans
Credit Card:
Domestic credit card	$	39	$	0	$	0	$	39
International card businesses	9		0		0		9
Total credit card	48		0		0		48
Consumer Banking:
Auto	0		9		129		138
Total consumer banking	0		9		129		138
Commercial Banking:
Commercial and multifamily real estate	0		46		0		46
Commercial and industrial	0		51		0		51
Total commercial banking	0		97		0		97
Total	$	48	$	106	$	129	$	283

Loans Pledged

We pledged loan collateral of $7.2 billion and $7.4 billion to secure a portion of our FHLB borrowing capacity of $37.0 billion and $32.1 billion as of September 30, 2024 and December 31, 2023, respectively. We also pledged loan collateral of $82.4 billion and $78.3 billion to secure our Federal Reserve Discount Window borrowing capacity of $46.9 billion and $41.4 billion as of September 30, 2024 and December 31, 2023, respectively. In addition to loans pledged, we have securitized a portion of our credit card and auto loan portfolios. See “Note 6—Variable Interest Entities and Securitizations” for additional information.

Revolving Loans Converted to Term Loans

For the three and nine months ended September 30, 2024, we converted $267 million and $588 million of revolving loans to term loans, respectively, primarily in our domestic credit card and commercial banking loan portfolios. For the three and nine months ended September 30, 2023, we converted $101 million and $443 million of revolving loans to term loans, respectively, primarily in our domestic credit card and commercial banking loan portfolios.

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Allowance for Credit Losses and Reserve for Unfunded Lending Commitments

9 Months Ended

Sep. 30, 2024

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Allowance for Credit Losses and Reserve for Unfunded Lending Commitments

NOTE 5—ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR UNFUNDED LENDING COMMITMENTS

Our allowance for credit losses represents management’s current estimate of expected credit losses over the contractual terms of our loans held for investment as of each balance sheet date. Expected recoveries of amounts previously charged off or expected to be charged off are recognized within the allowance. Significant judgment is applied in our estimation of lifetime credit losses. When developing an estimate of expected credit losses, we use both quantitative and qualitative methods in considering all available information relevant to assessing collectability. This may include internal information, external information, or a combination of both relating to past events, current conditions and reasonable and supportable forecasts. Our estimate of expected credit losses includes a reasonable and supportable forecast period of one year and then reverts over a one-year period to historical losses at each relevant loss component of the estimate. Management will consider and may qualitatively adjust for conditions, changes and trends in loan portfolios that may not be captured in modeled results. These adjustments are referred to as qualitative factors and represent management’s judgment of the imprecision and risks inherent in the processes and assumptions used in establishing the allowance for credit losses.

We have unfunded lending commitments in our Commercial Banking business that are not unconditionally cancellable by us and for which we estimate expected credit losses in establishing a reserve. This reserve is measured using the same measurement objectives as the allowance for loans held for investment. We build or release the reserve for unfunded lending commitments through the provision for credit losses in our consolidated statements of income, and the related reserve for unfunded lending commitments is included in other liabilities on our consolidated balance sheets.

See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for further discussion of the methodology and policies for determining our allowance for credit losses for each of our loan portfolio segments, as well as information on our reserve for unfunded lending commitments.

Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

The table below summarizes changes in the allowance for credit losses and reserve for unfunded lending commitments by portfolio segment for the three and nine months ended September 30, 2024 and 2023. Our allowance for credit losses increased by $1.2 billion to $16.5 billion as of September 30, 2024 from December 31, 2023.

Table 5.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

	Three Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of June 30, 2024	$	13,040	$	2,065	$	1,544	$	16,649
Charge-offs	(2,632)		(707)		(88)		(3,427)
Recoveries(1)	478		306		39		823
Net charge-offs	(2,154)		(401)		(49)		(2,604)
Provision for credit losses	2,084		351		35		2,470
Allowance release for credit losses	(70)		(50)		(14)		(134)
Other changes(2)	19		0		0		19
Balance as of September 30, 2024	12,989		2,015		1,530		16,534
Reserve for unfunded lending commitments:
Balance as of June 30, 2024	0		0		129		129
Provision for losses on unfunded lending commitments	0		0		13		13
Balance as of September 30, 2024	0		0		142		142
Combined allowance and reserve as of September 30, 2024	$	12,989	$	2,015	$	1,672	$	16,676

	Nine Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2023	$	11,709	$	2,042	$	1,545	$	15,296
Charge-offs	(7,892)		(2,003)		(166)		(10,061)
Recoveries(1)	1,273		869		55		2,197
Net charge-offs	(6,619)		(1,134)		(111)		(7,864)
Provision for credit losses	7,888		1,107		96		9,091
Allowance build (release) for credit losses(3)	1,269		(27)		(15)		1,227
Other changes(2)	11		0		0		11
Balance as of September 30, 2024	12,989		2,015		1,530		16,534
Reserve for unfunded lending commitments:
Balance as of December 31, 2023	0		0		158		158
Provision (benefit) for losses on unfunded lending commitments	0		0		(16)		(16)
Balance as of September 30, 2024	0		0		142		142
Combined allowance and reserve as of September 30, 2024	$	12,989	$	2,015	$	1,672	$	16,676

	Three Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of June 30, 2023	$	10,976	$	2,185	$	1,485	$	14,646
Charge-offs	(1,925)		(596)		(60)		(2,581)
Recoveries(1)	333		247		2		582
Net charge-offs	(1,592)		(349)		(58)		(1,999)
Provision for credit losses	1,953		213		155		2,321
Allowance build (release) for credit losses	361		(136)		97		322
Other changes(2)	(13)		0		0		(13)
Balance as of September 30, 2023	11,324		2,049		1,582		14,955
Reserve for unfunded lending commitments:
Balance as of June 30, 2023	0		0		197		197
Provision (benefit) for losses on unfunded lending commitments	0		0		(39)		(39)
Balance as of September 30, 2023	0		0		158		158
Combined allowance and reserve as of September 30, 2023	$	11,324	$	2,049	$	1,740	$	15,113

	Nine Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2022	$	9,545	$	2,237	$	1,458	$	13,240
Cumulative effects of accounting standards adoption(4)	(63)		0		0		(63)
Balance as of January 1, 2023	9,482		2,237		1,458		13,177
Charge-offs	(5,481)		(1,653)		(462)		(7,596)
Recoveries(1)	992		718		5		1,715
Net charge-offs	(4,489)		(935)		(457)		(5,881)
Provision for credit losses	6,298		747		581		7,626
Allowance build (release) for credit losses	1,809		(188)		124		1,745
Other changes(2)	33		0		0		33
Balance as of September 30, 2023	11,324		2,049		1,582		14,955
Reserve for unfunded lending commitments:
Balance as of December 31, 2022	0		0		218		218
Provision (benefit) for losses on unfunded lending commitments	0		0		(60)		(60)
Balance as of September 30, 2023	0		0		158		158
Combined allowance and reserve as of September 30, 2023	$	11,324	$	2,049	$	1,740	$	15,113

________

(1)The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications, repossession of collateral, the periodic sale of charged off loans as well as additional strategies, such as litigation.

(2)Primarily represents foreign currency translation adjustments in the three and nine months ended September 30, 2024 as well as the three months ended September 30, 2023. Primarily represents the initial allowance for purchased credit-deteriorated (“PCD”) loans in the nine months ended September 30, 2023. The initial allowance of PCD loans was $0 million and $32 million for the nine months ended September 30, 2024 and 2023, respectively.

(3)The termination of our Walmart program agreement, effective May 21, 2024, (“Walmart Program Termination”) resulted in an allowance for credit losses build in Domestic Card of $826 million in the second quarter of 2024.

(4)Impact from the adoption of ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures as of January 1, 2023.

We charge off loans when we determine that the loan is uncollectible. The amortized cost basis, excluding accrued interest, is charged off as a reduction to the allowance for credit losses in accordance with our accounting policies. For more information, see “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K.

Expected recoveries of amounts previously charged off or expected to be charged off are recognized within the allowance, with a corresponding reduction to our provision for credit losses.

The table below presents gross charge-offs for loans held for investment by vintage year during the nine months ended September 30, 2024.

Table 5.2: Gross Charge-Offs by Vintage Year

	Nine Months Ended September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Credit Card
Domestic credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		$	7,425	$	84	$	7,509
International card business	N/A		N/A		N/A		N/A		N/A		N/A		N/A		373		10		383
Total credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		7,798		94		7,892
Consumer Banking
Auto	$	70	$	474	$	630	$	457	$	184	$	126	$	1,941	0		0		1,941
Retail banking	1		0		0		0		0		3		4		57		1		62
Total consumer banking	71		474		630		457		184		129		1,945		57		1		2,003
Commercial Banking
Commercial and multifamily real estate	0		0		5		31		0		49		85		0		0		85
Commercial and industrial	0		0		46		5		16		4		71		10		0		81
Total commercial banking	0		0		51		36		16		53		156		10		0		166
Total	$	71	$	474	$	681	$	493	$	200	$	182	$	2,101	$	7,865	$	95	$	10,061

Credit Card Partnership Loss Sharing Arrangements

We have certain credit card partnership agreements that are presented within our consolidated financial statements on a net basis, in which our partner agrees to share a portion of the credit losses on the underlying loan portfolio. The expected reimbursements from these partners are netted against our allowance for credit losses. Our methodology for estimating reimbursements is consistent with the methodology we use to estimate the allowance for credit losses on our credit card loan receivables. These expected reimbursements result in reductions in net charge-offs and the provision for credit losses. See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for further discussion of our credit card partnership agreements.

The table below summarizes the changes in the estimated reimbursements from these partners for the three and nine months ended September 30, 2024 and 2023.

Table 5.3: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts

	Three Months Ended September 30,
(Dollars in millions)	2024		2023
Estimated reimbursements from partners, beginning of period	$	1,210	$	1,908
Amounts due from partners for charged off loans	(157)		(249)
Change in estimated partner reimbursements that decreased provision for credit losses	102		319
Estimated reimbursements from partners, end of period	$	1,155	$	1,978

	Nine Months Ended September 30,
(Dollars in millions)	2024		2023
Estimated reimbursements from partners, beginning of period	$	2,014	$	1,558
Amounts due from partners for charged off loans	(734)		(681)
Change in estimated partner reimbursements that (increased) decreased provision for credit losses	(125)		1,101
Estimated reimbursements from partners, end of period	$	1,155	$	1,978

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Variable Interest Entities and Securitizations

9 Months Ended

Sep. 30, 2024

Variable Interest Entities and Securitization [Abstract]

Variable Interest Entities and Securitizations

NOTE 6—VARIABLE INTEREST ENTITIES AND SECURITIZATIONS

In the normal course of business, we enter into various types of transactions with entities that are considered to be variable interest entities (“VIEs”). Our primary involvement with VIEs is related to our securitization transactions in which we transfer assets to securitization trusts. We primarily securitize credit card and auto loans, which provide a source of funding for us and enable us to transfer a certain portion of the economic risk of the loans or related debt securities to third parties.

The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. The majority of the VIEs in which we are involved have been consolidated in our financial statements.

Summary of Consolidated and Unconsolidated VIEs

The assets of our consolidated VIEs primarily consist of cash, loan receivables and the related allowance for credit losses, which we report on our consolidated balance sheets under restricted cash for securitization investors, loans held in consolidated trusts and allowance for credit losses, respectively. The assets of a particular VIE are the primary source of funds to settle its obligations. Creditors of these VIEs typically do not have recourse to our general credit. Liabilities primarily consist of debt securities issued by the VIEs, which we report under securitized debt obligations on our consolidated balance sheets. For unconsolidated VIEs, we present the carrying amount of assets and liabilities reflected on our consolidated balance sheets and our maximum exposure to loss. Our maximum exposure to loss is estimated based on the unlikely event that all of the assets in the VIEs become worthless and we are required to meet the maximum amount of any remaining funding obligations.

The tables below present a summary of VIEs in which we had continuing involvement or held a significant variable interest, aggregated based on VIEs with similar characteristics as of September 30, 2024 and December 31, 2023. We separately present information for consolidated and unconsolidated VIEs.

Table 6.1: Carrying Amount of Consolidated and Unconsolidated VIEs

	September 30, 2024
	Consolidated				Unconsolidated
(Dollars in millions)	Carrying Amount of Assets		Carrying Amount of Liabilities		Carrying Amount of Assets		Carrying Amount of Liabilities		Maximum Exposure to Loss
Securitization-Related VIEs:(1)
Credit card loan securitizations(2)	$	24,000	$	13,495	$	0	$	0	$	0
Auto loan securitizations	3,473		2,788		0		0		0
Total securitization-related VIEs	27,473		16,283		0		0		0
Other VIEs:(3)
Affordable housing entities	354		75		5,469		1,890		5,469
Entities that provide capital to low-income and rural communities	2,639		10		0		0		0
Other(4)	0		0		385		8		385
Total other VIEs	2,993		85		5,854		1,898		5,854
Total VIEs	$	30,466	$	16,368	$	5,854	$	1,898	$	5,854

	December 31, 2023
	Consolidated				Unconsolidated
(Dollars in millions)	Carrying Amount of Assets		Carrying Amount of Liabilities		Carrying Amount of Assets		Carrying Amount of Liabilities		Maximum Exposure to Loss
Securitization-Related VIEs:(1)
Credit card loan securitizations(2)	$	25,474	$	14,692	$	0	$	0	$	0
Auto loan securitizations	5,019		4,021		0		0		0
Total securitization-related VIEs	30,493		18,713		0		0		0
Other VIEs:(3)
Affordable housing entities	297		23		5,726		2,085		5,726
Entities that provide capital to low-income and rural communities	2,498		10		0		0		0
Other(4)	0		0		449		0		449
Total other VIEs	2,795		33		6,175		2,085		6,175
Total VIEs	$	33,288	$	18,746	$	6,175	$	2,085	$	6,175

__________

(1)Excludes insignificant VIEs from previously exited businesses.

(2)Represents the carrying amount of assets and liabilities of the VIE, which includes the seller’s interest and repurchased notes held by other related parties.

(3)In certain investment structures, we consolidate a VIE which holds as its primary asset an investment in an unconsolidated VIE. In these instances, we disclose the carrying amount of assets and liabilities on our consolidated balance sheets as unconsolidated VIEs to avoid duplicating our exposure, as the unconsolidated VIEs are generally the operating entities generating the exposure. The carrying amount of assets and liabilities included in the unconsolidated VIE columns above related to these investment structures were $2.6 billion of assets and $999 million of liabilities as of September 30, 2024, and $2.6 billion of assets and $989 million of liabilities as of December 31, 2023.

(4)Primarily consists of variable interests in companies that promote renewable energy sources and other equity method investments.

Securitization-Related VIEs

In a securitization transaction, assets are transferred to a trust, which generally meets the definition of a VIE. We engage in securitization activities as an issuer and an investor. Our primary securitization issuance activity includes credit card and auto securitizations, conducted through securitization trusts which we consolidate. Our continuing involvement in these securitization transactions mainly consists of acting as the primary servicer and holding certain retained interests.

In our multifamily agency business, we originate multifamily commercial real estate loans and transfer them to government-sponsored enterprises (“GSEs”) who may, in turn, securitize them. We retain the related mortgage servicing rights (“MSRs”) and service the transferred loans pursuant to the guidelines set forth by the GSEs. As an investor, we hold primarily RMBS, CMBS, and ABS in our investment securities portfolio, which represent variable interests in the respective securitization trusts from which those securities were issued. We do not consolidate the securitization trusts employed in these transactions as we do not have the power to direct the activities that most significantly impact the economic performance of these securitization trusts. We exclude these VIEs from the tables within this note because we do not consider our continuing involvement with these VIEs to be significant as we either solely invest in securities issued by the VIE and were not involved in the design of the VIE or no transfers have occurred between the VIE and ourselves. Our maximum exposure to loss as a result of our involvement with these VIEs is the carrying value of the MSRs and investment securities on our consolidated balance sheets as well as our contractual obligations under loss sharing arrangements. See “Note 14—Commitments, Contingencies, Guarantees and Others” for information about the loss sharing agreements, “Note 7—Goodwill and Other Intangible Assets” for information related to our MSRs associated with these securitizations and “Note 3—Investment Securities” for more information on the securities held in our investment securities portfolio. In addition, where we have certain lending arrangements in the normal course of business with entities that could be VIEs, we have excluded these VIEs from the tables presented in this note. See “Note 4—Loans” for additional information regarding our lending arrangements in the normal course of business.

The table below presents our continuing involvement in certain securitization-related VIEs as of September 30, 2024 and December 31, 2023.

Table 6.2: Continuing Involvement in Securitization-Related VIEs

(Dollars in millions)	Credit Card		Auto
September 30, 2024:
Securities held by third-party investors	$	13,098	$	2,783
Receivables in the trusts	24,867		3,315
Cash balance of spread or reserve accounts	0		19
Retained interests	Yes		Yes
Servicing retained	Yes		Yes
December 31, 2023:
Securities held by third-party investors	$	14,029	$	4,014
Receivables in the trusts	26,404		4,839
Cash balance of spread or reserve accounts	0		19
Retained interests	Yes		Yes
Servicing retained	Yes		Yes

Credit Card Securitizations

We securitize a portion of our credit card loans which provides a source of funding for us. Credit card securitizations involve the transfer of credit card receivables to securitization trusts. These trusts then issue debt securities collateralized by the transferred receivables to third-party investors. We hold certain retained interests in our credit card securitizations and continue to service the receivables in these trusts. We consolidate these trusts because we are deemed to be the primary beneficiary as we have the power to direct the activities that most significantly impact the economic performance of the trusts, and the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts.

Auto Securitizations

Similar to our credit card securitizations, we securitize a portion of our auto loans which provides a source of funding for us. Auto securitizations involve the transfer of auto loans to securitization trusts. These trusts then issue debt securities collateralized by the transferred loans to third-party investors. We hold certain retained interests and continue to service the loans in these trusts. We consolidate these trusts because we are deemed to be the primary beneficiary as we have the power to direct the activities that most significantly impact the economic performance of the trusts, and the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts.

Other VIEs

Affordable Housing Entities

As part of our community reinvestment initiatives, we invest in private investment funds that make equity investments in multifamily affordable housing properties, a majority of which are VIEs. We receive affordable housing tax credits for these investments. The activities of these entities are financed with a combination of invested equity capital and debt. We account for our investments in qualified affordable housing projects using the proportional amortization method, where costs of the investment are amortized over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of income tax expense attributable to continuing operations. For the nine months ended September 30, 2024 and 2023, we recognized amortization of $527 million and $522 million, respectively, and tax credits of $671 million and $652 million, respectively, associated with these investments within income tax provision. The carrying value of our equity investments in these qualified affordable housing projects was $5.3 billion and $5.5 billion as of September 30, 2024 and December 31, 2023, respectively. We are periodically required to provide additional financial or other support during the period of the investments. Our liability for these unfunded commitments was $2.1 billion and $2.3 billion as of September 30, 2024 and December 31, 2023, respectively, and is largely expected to be paid from 2024 to 2027.

For those investment funds considered to be VIEs, we are not required to consolidate them if we do not have the power to direct the activities that most significantly impact the economic performance of those entities. We record our interests in these unconsolidated VIEs in loans held for investment, other assets and other liabilities on our consolidated balance sheets. Our maximum exposure to these entities is limited to our variable interests in the entities which consisted of assets of approximately $5.5 billion and $5.7 billion as of September 30, 2024 and December 31, 2023, respectively. The creditors of the VIEs have no recourse to our general credit and we do not provide additional financial or other support other than during the period that we are contractually required to provide it. The total assets of the unconsolidated VIE investment funds were approximately $18.7 billion and $18.6 billion as of September 30, 2024 and December 31, 2023, respectively.

Entities that Provide Capital to Low-Income and Rural Communities

We hold variable interests in entities (“Investor Entities”) that invest in community development entities (“CDEs”) that provide debt financing to businesses and non-profit entities in low-income and rural communities. Variable interests in the CDEs held by the consolidated Investor Entities are also our variable interests. The activities of the Investor Entities are financed with a combination of invested equity capital and debt. The activities of the CDEs are financed solely with invested equity capital. We receive federal and state tax credits for these investments. We consolidate the VIEs in which we have the power to direct the activities that most significantly impact the VIE’s economic performance and where we have the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIE. We consolidate other investments and CDEs that are not considered to be VIEs, but where we hold a controlling financial interest. The assets of the VIEs that we consolidated, which totaled approximately $2.6 billion and $2.5 billion as of September 30, 2024 and December 31, 2023, respectively, are reflected on our consolidated balance sheets in cash, loans held for investment, and other assets. The liabilities are reflected in other liabilities. The creditors of the VIEs have no recourse to our general credit. We have not provided additional financial or other support other than during the period that we are contractually required to provide it.

Other

We hold variable interests in other VIEs, including companies that promote renewable energy sources and other equity method investments. We are not required to consolidate these VIEs because we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to these VIEs is limited to the investments on our consolidated balance sheets of $385 million and $449 million as of September 30, 2024 and December 31, 2023, respectively. The creditors of the other VIEs have no recourse to our general credit. We have not provided additional financial or other support other than during the period that we are contractually required to provide it.

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

NOTE 7—GOODWILL AND OTHER INTANGIBLE ASSETS

The table below presents our goodwill, other intangible assets and MSRs as of September 30, 2024 and December 31, 2023. Goodwill is presented separately, while other intangible assets and MSRs are included in other assets on our consolidated balance sheets.

Table 7.1: Components of Goodwill, Other Intangible Assets and MSRs

	September 30, 2024
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount
Goodwill	$	15,083	N/A		$	15,083
Other intangible assets:
Purchased credit card relationship (“PCCR”) intangibles	369		$	(147)	222
Other(1)	135		(104)		31
Total other intangible assets	504		(251)		253
Total goodwill and other intangible assets	$	15,587	$	(251)	$	15,336
Commercial MSRs(2)	$	658	$	(301)	$	357
	December 31, 2023
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount
Goodwill	$	15,065	N/A		$	15,065
Other intangible assets:
Purchased credit card relationship (“PCCR”) intangibles	369		$	(96)	273
Other(1)	171		(134)		37
Total other intangible assets	540		(230)		310
Total goodwill and other intangible assets	$	15,605	$	(230)	$	15,375
Commercial MSRs(2)	$	653	$	(263)	$	390

__________

(1)Primarily consists of intangibles for sponsorship, customer and merchant relationships, domain names and licenses.

(2)Commercial MSRs are accounted for under the amortization method on our consolidated balance sheets.

Amortization expense for amortizable intangible assets, which is presented separately in our consolidated statements of income, totaled $20 million and $58 million for the three and nine months ended September 30, 2024, respectively, and $24 million and $60 million for the three and nine months ended September 30, 2023, respectively.

Goodwill

The following table presents changes in the carrying amount of goodwill by each of our business segments as of September 30, 2024 and December 31, 2023.

Table 7.2: Goodwill by Business Segments

(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Balance as of December 31, 2023	$	5,366	$	4,645	$	5,054	$	15,065
Other adjustments(1)	18		0		0		18
Balance as of September 30, 2024	$	5,384	$	4,645	$	5,054	$	15,083

__________

(1)Primarily represents foreign currency translation adjustments.

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Deposits and Borrowings

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Deposits and Borrowings

NOTE 8—DEPOSITS AND BORROWINGS

Our deposits, which include checking accounts, money market deposits, negotiable order of withdrawals, savings deposits and time deposits, represent our largest source of funding for our assets and operations. We also use a variety of other funding sources including short-term borrowings, senior and subordinated notes, securitized debt obligations and other borrowings. Securitized debt obligations are presented separately on our consolidated balance sheets, as they represent obligations of consolidated securitization trusts, while federal funds purchased and securities loaned or sold under agreements to repurchase, senior and subordinated notes and other borrowings, including FHLB advances, are included in other debt on our consolidated balance sheets.

Our total short-term borrowings generally consist of federal funds purchased, securities loaned or sold under agreements to repurchase and FHLB advances. Our long-term debt consists of borrowings with an original contractual maturity of greater than one year. The following tables summarize the components of our deposits, short-term borrowings and long-term debt as of September 30, 2024 and December 31, 2023. The carrying value presented below for these borrowings includes any unamortized debt premiums and discounts, net of debt issuance costs and fair value hedge accounting adjustments.

Table 8.1: Components of Deposits, Short-Term Borrowings and Long-Term Debt

(Dollars in millions)	September 30, 2024		December 31, 2023
Deposits:
Non-interest-bearing deposits	$	26,378	$	28,024
Interest-bearing deposits(1)	327,253		320,389
Total deposits	$	353,631	$	348,413
Short-term borrowings:
Federal funds purchased and securities loaned or sold under agreements to repurchase	$	520	$	538
Total short-term borrowings	$	520	$	538

	September 30, 2024					December 31, 2023
(Dollars in millions)	Maturity Dates	Stated Interest Rates	Weighted-Average Interest Rate	Carrying Value		Carrying Value
Long-term debt:
Securitized debt obligations	2024-2028	0.77% - 6.11%	3.13%	$	15,881	$	18,043
Senior and subordinated notes:
Fixed unsecured senior debt(2)	2024-2035	1.65 - 7.62	4.76	29,102		27,168
Floating unsecured senior debt	—	—	—	0		349
Total unsecured senior debt			4.76	29,102		27,517
Fixed unsecured subordinated debt	2025-2032	2.36 - 4.20	3.57	3,809		3,731
Total senior and subordinated notes				32,911		31,248
Other long-term borrowings	2024-2031	1.20 - 9.91	6.59	24		27
Total long-term debt				$	48,816	$	49,318
Total short-term borrowings and long-term debt				$	49,336	$	49,856

__________

(1)Some customers have time deposits in excess of the federal deposit insurance limit, making a portion of the deposit uninsured. As of September 30, 2024, the total time deposit amount with some portion in excess of the insured amount was $14.7 billion and the portion of total time deposits estimated to be uninsured was $9.7 billion. As of December 31, 2023, the total time deposit amount with some portion in excess of the insured amount was $15.8 billion and the portion of total time deposits estimated to be uninsured was $9.0 billion.

(2)Includes $506 million and $1.3 billion of Euro (“EUR”) denominated unsecured notes as of September 30, 2024 and December 31, 2023, respectively.

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Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

NOTE 9—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Use of Derivatives and Accounting for Derivatives

We regularly enter into derivative transactions to support our overall risk management activities. Our primary market risks stem from the impact on our earnings and economic value of equity due to changes in interest rates and, to a lesser extent, changes in foreign exchange rates. We manage our interest rate sensitivity by employing several techniques, which include changing the duration and re-pricing characteristics of various assets and liabilities by using interest rate derivatives. We also use foreign currency derivatives to limit our earnings and capital exposures to foreign exchange risk by hedging certain exposures denominated in foreign currencies. We primarily use interest rate and foreign currency swaps to perform these hedging activities, but we may also use a variety of other derivative instruments, including caps, floors, options, futures and forward contracts, to manage our interest rate and foreign exchange risks. We designate these risk management derivatives as either qualifying accounting hedges or free-standing derivatives. Qualifying accounting hedges are further designated as fair value hedges, cash flow hedges or net investment hedges. Free-standing derivatives are economic hedges that do not qualify for hedge accounting.

We also offer interest rate, commodity, foreign currency derivatives and other contracts as an accommodation to our customers within our Commercial Banking business. We enter into these derivatives with our customers primarily to help them manage their interest rate risks, hedge their energy and other commodities exposures, and manage foreign currency fluctuations. We offset the substantial majority of the market risk exposure of our customer accommodation derivatives through derivative transactions with other counterparties.

See below for additional information on our use of derivatives and how we account for them:

•Fair Value Hedges: We designate derivatives as fair value hedges when they are used to manage our exposure to changes in the fair value of certain financial assets and liabilities, which fluctuate in value as a result of movements in interest rates. Changes in the fair value of derivatives designated as fair value hedges are presented in the same line item in our consolidated statements of income as the earnings effect of the hedged items. We enter into receive-fixed, pay-float interest rate swaps to hedge changes in the fair value of outstanding fixed rate debt and deposits due to fluctuations in market interest rates. We also enter into pay-fixed, receive-float interest rate swaps to hedge changes in the fair value of fixed rate investment securities.

•Cash Flow Hedges: We designate derivatives as cash flow hedges when they are used to manage our exposure to variability in cash flows related to forecasted transactions. Changes in the fair value of derivatives designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (“AOCI”). Those amounts are reclassified into earnings in the same period during which the hedged forecasted transactions impact earnings and presented in the same line item in our consolidated statements of income as the earnings effect of the hedged items. We enter into receive-fixed, pay-float interest rate swaps and interest rate floors to modify the interest rate characteristics of designated credit card and commercial loans from floating to fixed in order to reduce the impact of changes in forecasted future cash flows due to fluctuations in market interest rates. We also enter into foreign currency forward contracts to hedge our exposure to variability in cash flows related to intercompany borrowings denominated in foreign currencies.

•Net Investment Hedges: We use net investment hedges to manage the foreign currency exposure related to our net investments in foreign operations that have functional currencies other than the U.S. dollar. Changes in the fair value of net investment hedges are recorded in the translation adjustment component of AOCI, offsetting the translation gain or loss from those foreign operations. We execute net investment hedges using foreign currency forward contracts to hedge the translation exposure of the net investment in our foreign operations under the forward method.

•Free-Standing Derivatives: Our free-standing derivatives primarily consist of our customer accommodation derivatives and other economic hedges. The customer accommodation derivatives and the related offsetting contracts are mainly interest rate, commodity and foreign currency contracts. The other free-standing derivatives are primarily used to economically hedge the risk of changes in the fair value of our commercial mortgage loan origination and purchase commitments as well as other interests held. Changes in the fair value of free-standing derivatives are recorded in earnings as a component of other non-interest income.

Derivatives Counterparty Credit Risk

Counterparty Types

Derivative instruments contain an element of credit risk that stems from the potential failure of a counterparty to perform according to the terms of the contract, including making payments due upon maturity of certain derivative instruments. We execute our derivative contracts primarily in “over-the-counter” (“OTC”) markets. We also execute interest rate and commodity futures in the exchange-traded derivative markets. Our OTC derivatives consist of both trades cleared through central counterparty clearinghouses (“CCPs”) and uncleared bilateral contracts. The Chicago Mercantile Exchange (“CME”), the Intercontinental Exchange (“ICE”) and the LCH Group (“LCH”) are our CCPs for our centrally cleared contracts. In our uncleared bilateral contracts, we enter into agreements directly with our derivative counterparties.

Counterparty Credit Risk Management

We manage the counterparty credit risk associated with derivative instruments by entering into legally enforceable master netting agreements, where applicable, and exchanging collateral with our counterparties, typically in the form of cash or high-quality liquid securities. We exchange collateral in two primary forms: variation margin, which accounts for changes in market value due to daily market movements, and initial margin, which offsets the potential future exposure of a derivative. We exchange variation margin and initial margin on bilateral derivatives in scope for uncleared margin rules.

The amount of collateral exchanged for variation margin is dependent upon the fair value of the derivative instruments as well as the fair value of the pledged collateral and will vary over time as market variables change. The amount of the initial margin exchanged is dependent upon 1) the calculation of initial margin exposure, as prescribed by 1(a) the U.S. prudential regulators’ margin rules for uncleared derivatives (“PR Rules”) or 1(b) the CCPs for cleared derivatives and 2) the fair value of the pledged collateral; it will vary over time as market variables change. When valuing collateral, an estimate of the variation in price and liquidity over time is subtracted in the form of a “haircut” to discount the value of the collateral pledged. Our exposure to derivative counterparty credit risk, at any point in time, is equal to the amount reported as a derivative asset on our balance sheet. The fair value of our derivatives is adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated collateral received or pledged. See Table 9.3 for our net exposure associated with derivatives.

The terms under which we collateralize our exposures differ between cleared exposures and uncleared bilateral exposures.

•CCPs: We clear eligible OTC derivatives with CCPs as part of our regulatory requirements. We also clear exchange-traded instruments, like futures, with CCPs. Futures commission merchants (“FCMs”) serve as the intermediary between CCPs and us. CCPs require that we post initial and variation margin through our FCMs to mitigate the risk of non-payment or default. Initial margin is required by CCPs as collateral against potential losses on our exchange-traded and cleared derivative contracts and variation margin is exchanged on a daily basis to account for mark-to-market changes in those derivative contracts. For CME, ICE and LCH-cleared OTC derivatives, variation margin cash payments are required to be characterized as settlements. Our FCM agreements governing these derivative transactions include provisions that may require us to post additional collateral under certain circumstances.

•Bilateral Counterparties: We enter into master netting agreements and collateral agreements with bilateral derivative counterparties, where applicable, to mitigate the risk of default. These bilateral agreements typically provide the right to offset exposure with the same counterparty and require the party in a net liability position to post collateral. Agreements with certain bilateral counterparties require both parties to maintain collateral in the event the fair values of uncleared derivatives exceed established exposure thresholds. Certain of these bilateral agreements include provisions requiring that our debt maintain a credit rating of investment grade or above by each of the major credit rating agencies. In the event of a downgrade of our debt credit rating below investment grade, some of our counterparties would have the right to terminate their derivative contract and close out existing positions.

Credit Risk Valuation Adjustments

We record counterparty credit valuation adjustments (“CVAs”) on our derivative assets to reflect the credit quality of our counterparties. We consider collateral and legally enforceable master netting agreements that mitigate our credit exposure to each counterparty in determining CVAs, which may be adjusted due to changes in the fair values of the derivative contracts, collateral, and creditworthiness of the counterparty. We also record debit valuation adjustments (“DVAs”) to adjust the fair values of our derivative liabilities to reflect the impact of our own credit quality.

Balance Sheet Presentation

The following table summarizes the notional amounts and fair values of our derivative instruments as of September 30, 2024 and December 31, 2023, which are segregated by derivatives that are designated as accounting hedges and those that are not, and are further segregated by type of contract within those two categories. The total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated cash collateral received or pledged. Derivative assets and liabilities are included in other assets and other liabilities, respectively, on our consolidated balance sheets, and their related gains or losses are included in operating activities as changes in other assets and other liabilities in the consolidated statements of cash flows.

Table 9.1: Derivative Assets and Liabilities at Fair Value

	September 30, 2024						December 31, 2023
	Notional or Contractual Amount		Derivative(1)				Notional or Contractual Amount		Derivative(1)
(Dollars in millions)			Assets		Liabilities				Assets		Liabilities
Derivatives designated as accounting hedges:
Interest rate contracts:
Fair value hedges	$	64,284	$	8	$	82	$	68,987	$	18	$	26
Cash flow hedges	93,050		307		80		70,350		216		23
Total interest rate contracts	157,334		315		162		139,337		234		49
Foreign exchange contracts:
Fair value hedges	557		0		66		1,380		0		113
Cash flow hedges	2,645		0		59		2,488		0		66
Net investment hedges	5,100		2		174		4,870		1		89
Total foreign exchange contracts	8,302		2		299		8,738		1		268
Total derivatives designated as accounting hedges	165,636		317		461		148,075		235		317
Derivatives not designated as accounting hedges:
Customer accommodation:
Interest rate contracts	103,279		844		929		103,489		1,188		1,382
Commodity contracts	35,647		1,177		1,182		33,495		1,161		1,147
Foreign exchange and other contracts	5,580		31		39		5,153		50		47
Total customer accommodation	144,506		2,052		2,150		142,137		2,399		2,576
Other interest rate exposures(2)	921		19		14		872		21		31
Other contracts	3,011		20		32		2,955		20		8
Total derivatives not designated as accounting hedges	148,438		2,091		2,196		145,964		2,440		2,615
Total derivatives	$	314,074	$	2,408	$	2,657	$	294,039	$	2,675	$	2,932
Less: netting adjustment(3)			(725)		(622)				(1,005)		(597)
Total derivative assets/liabilities			$	1,683	$	2,035			$	1,670	$	2,335

__________

(1)Does not reflect $3 million and $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of September 30, 2024 and December 31, 2023, respectively. This net valuation allowance is included as part of other assets and other liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income.

(2)Other interest rate exposures include commercial mortgage-related derivatives and interest rate swaps.

(3)Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty.

The following table summarizes the carrying value of our hedged assets and liabilities in fair value hedges and the associated cumulative basis adjustments included in those carrying values, excluding basis adjustments related to foreign currency risk, as of September 30, 2024 and December 31, 2023.

Table 9.2: Hedged Items in Fair Value Hedging Relationships

	September 30, 2024						December 31, 2023
	Carrying Amount Assets/(Liabilities)		Cumulative Amount of Basis Adjustments Included in the Carrying Amount				Carrying Amount Assets/(Liabilities)		Cumulative Amount of Basis Adjustments Included in the Carrying Amount
(Dollars in millions)			Total Assets/(Liabilities)		Discontinued-Hedging Relationships				Total Assets/(Liabilities)		Discontinued-Hedging Relationships
Line item on our consolidated balance sheets in which the hedged item is included:
Investment securities available for sale(1)(2)	$	6,191	$	78	$	87	$	6,108	$	(8)	$	126
Interest-bearing deposits	(11,292)		64		0		(17,374)		277		0
Securitized debt obligations	(13,042)		242		0		(13,375)		503		0
Senior and subordinated notes	(31,410)		385		(258)		(30,899)		971		(372)

__________

(1)These amounts include the amortized cost basis of our investment securities designated in hedging relationships for which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. The amortized cost basis of this portfolio was $1.4 billion and $2.2 billion as of September 30, 2024 and December 31, 2023, respectively. The amount of the designated hedged items was $1.0 billion and $1.5 billion as of September 30, 2024 and December 31, 2023, respectively. The cumulative basis adjustments associated with these hedges was $32 million and $33 million as of September 30, 2024 and December 31, 2023, respectively.

(2)Carrying value represents amortized cost.

Balance Sheet Offsetting of Financial Assets and Liabilities

Derivative contracts and repurchase agreements that we execute bilaterally in the OTC market are generally governed by enforceable master netting agreements where we generally have the right to offset exposure with the same counterparty. Either counterparty can generally request to net settle all contracts through a single payment upon default on, or termination of, any one contract. We elect to offset the derivative assets and liabilities under master netting agreements for balance sheet presentation where a right of setoff exists. For derivative contracts entered into under master netting agreements for which we have not been able to confirm the enforceability of the setoff rights, or those not subject to master netting agreements, we do not offset our derivative positions for balance sheet presentation.

The following table presents the gross and net fair values of our derivative assets, derivative liabilities, resale and repurchase agreements and the related offsetting amounts permitted under U.S. GAAP as of September 30, 2024 and December 31, 2023. The table also includes cash and non-cash collateral received or pledged in accordance with such arrangements. The amount of collateral presented, however, is limited to the amount of the related net derivative fair values or outstanding balances; therefore, instances of over-collateralization are excluded.

Table 9.3: Offsetting of Financial Assets and Financial Liabilities

	Gross Amounts		Gross Amounts Offset in the Balance Sheet				Net Amounts as Recognized		Securities Collateral Held Under Master Netting Agreements		Net Exposure
(Dollars in millions)			Financial Instruments		Cash Collateral Received
As of September 30, 2024
Derivative assets(1)	$	2,408	$	(474)	$	(251)	$	1,683	$	(11)	$	1,672
As of December 31, 2023
Derivative assets(1)	2,675		(433)		(572)		1,670		(22)		1,648

	Gross Amounts		Gross Amounts Offset in the Balance Sheet				Net Amounts as Recognized		Securities Collateral Pledged Under Master Netting Agreements		Net Exposure
(Dollars in millions)			Financial Instruments		Cash Collateral Pledged
As of September 30, 2024
Derivative liabilities(1)	$	2,657	$	(474)	$	(148)	$	2,035	$	(27)	$	2,008
Repurchase agreements(2)	520		0		0		520		(520)		0
As of December 31, 2023
Derivative liabilities(1)	2,932		(433)		(164)		2,335		(13)		2,322
Repurchase agreements(2)	538		0		0		538		(538)		0

__________

(1)We received cash collateral from derivative counterparties totaling $428 million and $858 million as of September 30, 2024 and December 31, 2023, respectively. We also received securities from derivative counterparties with a fair value of approximately $11 million and $16 million as of September 30, 2024 and December 31, 2023, respectively, which we have the ability to re-pledge. We posted $1.7 billion of cash collateral as of both September 30, 2024 and December 31, 2023.

(2)Under our customer repurchase agreements, which mature the next business day, we pledged collateral with a fair value of $531 million and $549 million as of September 30, 2024 and December 31, 2023, respectively, primarily consisting of agency RMBS securities.

Income Statement and AOCI Presentation

Fair Value and Cash Flow Hedges

The net gains (losses) recognized in our consolidated statements of income related to derivatives in fair value and cash flow hedging relationships are presented below for the three and nine months ended September 30, 2024 and 2023.

Table 9.4: Effects of Fair Value and Cash Flow Hedge Accounting

	Three Months Ended September 30, 2024
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	733	$	10,547	$	580	$	(2,945)	$	(234)	$	(596)	$	244
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	39	$	0	$	0	$	(73)	$	(102)	$	(248)	$	0
Gains (losses) recognized on derivatives	(144)		0		0		247		210		1,010		21
Gains (losses) recognized on hedged items(1)	128		0		0		(246)		(210)		(973)		(21)
Excluded component of fair value hedges(2)	0		0		0		0		0		0		0
Net income (expense) recognized on fair value hedges	$	23	$	0	$	0	$	(72)	$	(102)	$	(211)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income	$	0	$	(314)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		2		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(314)	$	2	$	0	$	0	$	0	$	1

	Nine Months Ended September 30, 2024
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	2,120	$	30,460	$	1,737	$	(8,631)	$	(753)	$	(1,793)	$	803
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	125	$	0	$	0	$	(277)	$	(339)	$	(771)	$	0
Gains (losses) recognized on derivatives	(137)		0		0		213		261		742		(18)
Gains (losses) recognized on hedged items(1)	86		0		0		(213)		(261)		(627)		18
Excluded component of fair value hedges(2)	0		0		0		0		0		7		0
Net income (expense) recognized on fair value hedges	$	74	$	0	$	0	$	(277)	$	(339)	$	(649)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income	$	0	$	(936)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		7		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(936)	$	7	$	0	$	0	$	0	$	1

	Three Months Ended September 30, 2023
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	627	$	9,696	$	550	$	(2,611)	$	(249)	$	(579)	$	256
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	42	$	0	$	0	$	(104)	$	(112)	$	(275)	$	0
Gains (losses) recognized on derivatives	(15)		0		0		(38)		4		(273)		(42)
Gains (losses) recognized on hedged items(1)	(6)		0		0		38		(4)		313		42
Excluded component of fair value hedges(2)	0		0		0		0		0		(1)		0
Net income (expense) recognized on fair value hedges	$	21	$	0	$	0	$	(104)	$	(112)	$	(236)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income	$	0	$	(320)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		3		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(320)	$	3	$	0	$	0	$	0	$	1

	Nine Months Ended September 30, 2023
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	1,881	$	27,476	$	1,436	$	(6,744)	$	(696)	$	(1,596)	$	730
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	113	$	0	$	0	$	(278)	$	(297)	$	(754)	$	0
Gains (losses) recognized on derivatives	(35)		0		0		(84)		(10)		(275)		(17)
Gains (losses) recognized on hedged items(1)	(22)		0		0		81		9		388		17
Excluded component of fair value hedges(2)	0		0		0		0		0		(2)		0
Net income (expense) recognized on fair value hedges	$	56	$	0	$	0	$	(281)	$	(298)	$	(643)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains reclassified from AOCI into net income	$	0	$	(879)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		9		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(879)	$	9	$	0	$	0	$	0	$	1

_________

(1)Includes amortization benefit of $21 million and $62 million for the three and nine months ended September 30, 2024, respectively, and amortization benefit of $20 million and $56 million for the three and nine months ended September 30, 2023, respectively, related to basis adjustments on discontinued hedges.

(2)Changes in fair values of cross-currency swaps attributable to changes in cross-currency basis spreads are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income (“OCI”). The initial value of the excluded component is recognized in earnings over the life of the swap under the amortization approach.

(3)See “Note 10—Stockholders’ Equity” for the effects of cash flow and net investment hedges on AOCI and amounts reclassified to net income, net of tax.

(4)We recognized a loss of $56 million and $1 million for the three and nine months ended September 30, 2024, respectively, and gain of $100 million and $70 million for the three and nine months ended September 30, 2023, respectively, on foreign exchange contracts reclassified from AOCI. These amounts were largely offset by the foreign currency transaction gains (losses) on our foreign currency denominated intercompany funding included in other non-interest income on our consolidated statements of income.

In the next 12 months, we expect to reclassify into earnings an after-tax loss of $526 million recorded in AOCI as of September 30, 2024 associated with cash flow hedges of forecasted transactions. This amount will largely offset the cash flows associated with the forecasted transactions hedged by these derivatives. The maximum length of time over which forecasted transactions were hedged was approximately 9.5 years as of September 30, 2024. The amount we expect to reclassify into earnings may change as a result of changes in market conditions and ongoing actions taken as part of our overall risk management strategy.

Free-Standing Derivatives

The net impacts to our consolidated statements of income related to free-standing derivatives are presented below for the three and nine months ended September 30, 2024 and 2023. These gains or losses are recognized in other non-interest income on our consolidated statements of income.

Table 9.5: Gains (Losses) on Free-Standing Derivatives

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2024		2023		2024		2023
Gains (losses) recognized in other non-interest income:
Customer accommodation:
Interest rate contracts	$	3	$	7	$	20	$	26
Commodity contracts	5		11		13		28
Foreign exchange and other contracts	3		5		15		13
Total customer accommodation	11		23		48		67
Other interest rate exposures	48		81		206		199
Other contracts	(31)		(7)		(51)		(24)
Total	$	28	$	97	$	203	$	242

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Stockholders' Equity

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Stockholders' Equity

NOTE 10—STOCKHOLDERS’ EQUITY

Preferred Stock

The following table summarizes our preferred stock outstanding as of September 30, 2024 and December 31, 2023.

Table 10.1: Preferred Stock Outstanding(1)

			Redeemable by Issuer Beginning	Per Annum Dividend Rate	Dividend Frequency	Liquidation Preference per Share		Total Shares Outstanding as of September 30, 2024	Carrying Value (in millions)
Series	Description	Issuance Date							September 30, 2024		December 31, 2023
Series I	5.000% Non-Cumulative	September 11, 2019	December 1, 2024	5.000%	Quarterly	$	1,000	1,500,000	$	1,462	$	1,462
Series J	4.800% Non-Cumulative	January 31,  2020	June 1, 2025	4.800	Quarterly	1,000		1,250,000	1,209		1,209
Series K	4.625% Non-Cumulative	September 17, 2020	December 1, 2025	4.625	Quarterly	1,000		125,000	122		122
Series L	4.375% Non-Cumulative	May 4, 2021	September 1, 2026	4.375	Quarterly	1,000		675,000	652		652
Series M	3.950% Fixed Rate Reset Non-Cumulative	June 10, 2021	September 1, 2026	3.950% through 8/31/2026; resets 9/1/2026 and every subsequent 5 year anniversary at 5-Year Treasury Rate +3.157%	Quarterly	1,000		1,000,000	988		988
Series N	4.250% Non-Cumulative	July 29, 2021	September 1, 2026	4.250%	Quarterly	1,000		425,000	412		412
Total									$	4,845	$	4,845

__________

(1)Except for Series M, ownership is held in the form of depositary shares, each representing a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock.

Accumulated Other Comprehensive Income

AOCI primarily consists of accumulated net unrealized gains or losses associated with securities available for sale, changes in fair value of derivatives in hedging relationships and foreign currency translation adjustments.

The following table presents the changes in AOCI by component for the three and nine months ended September 30, 2024 and 2023.

Table 10.2: AOCI

	Three Months Ended September 30, 2024
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of June 30, 2024	$	(7,797)	$	(1,885)	$	12	$	(31)	$	(9,701)
Other comprehensive income before reclassifications	2,274		791		45		0		3,110
Amounts reclassified from AOCI into earnings	26		278		0		0		304
Other comprehensive income, net of tax	2,300		1,069		45		0		3,414
AOCI as of September 30, 2024	$	(5,497)	$	(816)	$	57	$	(31)	$	(6,287)

	Nine Months Ended September 30, 2024
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of December 31, 2023	$	(6,769)	$	(1,493)	$	26	$	(32)	$	(8,268)
Other comprehensive income (loss) before reclassifications	1,246		(21)		31		1		1,257
Amounts reclassified from AOCI into earnings	26		698		0		0		724
Other comprehensive income, net of tax	1,272		677		31		1		1,981
AOCI as of September 30, 2024	$	(5,497)	$	(816)	$	57	$	(31)	$	(6,287)

	Three Months Ended September 30, 2023
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of June 30, 2023	$	(7,602)	$	(2,205)	$	27	$	(38)	$	(9,818)
Other comprehensive income (loss) before reclassifications	(2,108)		(424)		(39)		0		(2,571)
Amounts reclassified from AOCI into earnings	0		165		0		0		165
Other comprehensive income (loss), net of tax	(2,108)		(259)		(39)		0		(2,406)
AOCI as of September 30, 2023	$	(9,710)	$	(2,464)	$	(12)	$	(38)	$	(12,224)

	Nine Months Ended September 30, 2023
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of December 31, 2022	$	(7,676)	$	(2,182)	$	(20)	$	(38)	$	(9,916)
Other comprehensive income (loss) before reclassifications	(2,034)		(890)		8		0		(2,916)
Amounts reclassified from AOCI into earnings	0		608		0		0		608
Other comprehensive income (loss), net of tax	(2,034)		(282)		8		0		(2,308)
AOCI as of September 30, 2023	$	(9,710)	$	(2,464)	$	(12)	$	(38)	$	(12,224)

__________

(1)Includes amounts related to cash flow hedges as well as the excluded component of cross-currency swaps designated as fair value hedges.

(2)Includes other comprehensive losses of $134 million and $72 million for the three and nine months ended September 30, 2024, respectively, and other comprehensive gains of $115 million and losses of $1 million for the three and nine months ended September 30, 2023, respectively, from hedging instruments designated as net investment hedges.

The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the three and nine months ended September 30, 2024 and 2023.

Table 10.3: Reclassifications from AOCI

(Dollars in millions)		Three Months Ended September 30,				Nine Months Ended September 30,
AOCI Components	Affected Income Statement Line Item	2024		2023		2024		2023
Securities available for sale:
	Non-interest income (expense)	$	(34)	$	0	$	(34)	$	0
	Income tax provision (benefit)	(8)		0		(8)		0
	Net income (loss)	(26)		0		(26)		0
Hedging relationships:
Interest rate contracts:	Interest income (expense)	(314)		(320)		(936)		(879)
Foreign exchange contracts:	Interest income	2		3		7		9
	Interest income (expense)	0		(1)		7		(2)
	Non-interest income (expense)	(56)		100		(1)		70
	Income (loss) from continuing operations before income taxes	(368)		(218)		(923)		(802)
	Income tax provision (benefit)	(90)		(53)		(225)		(194)
	Net income (loss)	(278)		(165)		(698)		(608)
Other:
	Non-interest income and non-interest expense	0		0		0		0
	Income tax provision (benefit)	0		0		0		0
	Net income (loss)	0		0		0		0
Total reclassifications		$	(304)	$	(165)	$	(724)	$	(608)

The table below summarizes other comprehensive income (loss) activity and the related tax impact for the three and nine months ended September 30, 2024 and 2023.

Table 10.4: Other Comprehensive Income (Loss)

	Three Months Ended September 30,
	2024						2023
(Dollars in millions)	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale	$	3,033	$	733	$	2,300	$	(2,780)	$	(672)	$	(2,108)
Net unrealized gains (losses) on hedging relationships	1,412		343		1,069		(342)		(83)		(259)
Foreign currency translation adjustments(1)	2		(43)		45		(2)		37		(39)
Other comprehensive income (loss)	$	4,447	$	1,033	$	3,414	$	(3,124)	$	(718)	$	(2,406)

	Nine Months Ended September 30,
	2024						2023
(Dollars in millions)	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale	$	1,674	$	402	$	1,272	$	(2,684)	$	(650)	$	(2,034)
Net unrealized gains (losses) on hedging relationships	894		217		677		(372)		(90)		(282)
Foreign currency translation adjustments(1)	8		(23)		31		8		0		8
Other	1		0		1		0		0		0
Other comprehensive income (loss)	$	2,577	$	596	$	1,981	$	(3,048)	$	(740)	$	(2,308)

__________

(1)Includes the impact of hedging instruments designated as net investment hedges.

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Earnings Per Common Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Common Share

NOTE 11—EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings per common share.

Table 11.1: Computation of Basic and Diluted Earnings per Common Share

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars and shares in millions, except per share data)	2024		2023		2024		2023
Net income	$	1,777	$	1,790	$	3,654	$	4,181
Dividends and undistributed earnings allocated to participating securities	(28)		(28)		(60)		(67)
Preferred stock dividends	(57)		(57)		(171)		(171)
Net income available to common stockholders	$	1,692	$	1,705	$	3,423	$	3,943
Total weighted-average basic common shares outstanding	383.0		382.5		382.8		382.7
Effect of dilutive securities:(1)
Stock options	0.1		0.1		0.2		0.1
Other contingently issuable shares	0.6		0.7		0.7		0.8
Total effect of dilutive securities	0.7		0.8		0.9		0.9
Total weighted-average diluted common shares outstanding	383.7		383.3		383.7		383.6
Basic earnings per common share:
Net income per basic common share	$	4.42	$	4.46	$	8.94	$	10.31
Diluted earnings per common share:(1)
Net income per diluted common share	$	4.41	$	4.45	$	8.92	$	10.28

__________

(1)Excluded from the computation of diluted earnings per share were awards of 43 thousand shares and 13 thousand shares for the nine months ended September 30, 2024 and 2023, respectively, because their inclusion would be anti-dilutive. There were no awards excluded from the computation of dilutive earning per share for the three months ended September 30, 2024 and 2023.

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Fair Value Measurement

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurement

NOTE 12—FAIR VALUE MEASUREMENT

Fair value, also referred to as an exit price, is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. The fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are described below:

Level 1:	Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2:	Valuation is based on observable market-based inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:	Valuation is generated from techniques that use significant assumptions not observable in the market. Valuation techniques include pricing models, discounted cash flow (“DCF”) methodologies or similar techniques.

The accounting guidance for fair value measurements requires that we maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. We consider all available information, including observable market data, indications of market liquidity and orderliness, and our understanding of the valuation techniques and significant inputs. Based upon the specific facts and circumstances of each instrument or instrument category, judgments are made regarding the significance of the observable or unobservable inputs to the instruments’ fair value measurement in its entirety. If unobservable inputs are considered significant, the instrument is classified as Level 3. The process for determining fair value using unobservable inputs is generally more subjective and involves a high degree of management judgment and assumptions. The accounting guidance provides for the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at inception of the contract and record any subsequent changes in fair value in earnings.

The determination and classification of financial instruments in the fair value hierarchy is performed at the end of each reporting period. For additional information on the valuation techniques used in estimating the fair value of our financial assets and liabilities on a recurring basis, see “Part II—Item 8. Financial Statements and Supplementary Data—Note 16—Fair Value Measurement” in our 2023 Form 10-K.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table displays our assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis as of September 30, 2024 and December 31, 2023.

Table 12.1: Assets and Liabilities Measured at Fair Value on a Recurring Basis

	September 30, 2024
	Fair Value Measurements Using						Netting Adjustments(1)
(Dollars in millions)	Level 1		Level 2		Level 3				Total
Assets:
Securities available for sale:
U.S. Treasury securities	$	6,032	$	0	$	0	$	0	$	6,032
RMBS	0		66,127		180		0		66,307
CMBS	0		8,181		2		0		8,183
Other securities	131		2,847		0		0		2,978
Total securities available for sale	6,163		77,155		182		0		83,500
Loans held for sale	0		77		0		0		77
Other assets:
Derivative assets(2)	866		929		613		(725)		1,683
Other(3)	675		0		34		0		709
Total assets	$	7,704	$	78,161	$	829	$	(725)	$	85,969
Liabilities:
Other liabilities:
Derivative liabilities(2)	$	574	$	1,515	$	568	$	(622)	$	2,035
Total liabilities	$	574	$	1,515	$	568	$	(622)	$	2,035

	December 31, 2023
	Fair Value Measurements Using						Netting Adjustments(1)
(Dollars in millions)	Level 1		Level 2		Level 3				Total
Assets:
Securities available for sale:
U.S. Treasury securities	$	5,282	$	0	$	0	$	0	$	5,282
RMBS	0		63,492		146		0		63,638
CMBS	0		8,191		132		0		8,323
Other securities	126		1,748		0		0		1,874
Total securities available for sale	5,408		73,431		278		0		79,117
Loans held for sale	0		347		0		0		347
Other assets:
Derivative assets(2)	788		1,001		886		(1,005)		1,670
Other(3)	589		3		35		0		627
Total assets	$	6,785	$	74,782	$	1,199	$	(1,005)	$	81,761
Liabilities:
Other liabilities:
Derivative liabilities(2)	$	449	$	1,655	$	828	$	(597)	$	2,335
Total liabilities	$	449	$	1,655	$	828	$	(597)	$	2,335

__________

(1)Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. See “Note 9—Derivative Instruments and Hedging Activities” for additional information.

(2)Does not reflect approximately $3 million and $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of September 30, 2024 and December 31, 2023, respectively. Non-performance risk is included in the measurement of derivative assets and liabilities on our consolidated balance sheets, and is recorded through non-interest income in the consolidated statements of income.

(3)As of September 30, 2024 and December 31, 2023, other includes retained interests in securitizations of $34 million and $35 million, deferred compensation plan assets of $670 million and $578 million and equity securities of $5 million (including unrealized gains of $5 million) and $14 million (including unrealized gains of $5 million), respectively.

Level 3 Recurring Fair Value Rollforward

The table below presents a reconciliation for all assets and liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2024 and 2023. Generally, transfers into Level 3 were primarily driven by the usage of unobservable assumptions in the pricing of these financial instruments as evidenced by wider pricing variations among pricing vendors and transfers out of Level 3 were primarily driven by the usage of assumptions corroborated by market observable information as evidenced by tighter pricing among multiple pricing sources.

Table 12.2: Level 3 Recurring Fair Value Rollforward

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2024
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2024(1)
(Dollars in millions)	Balance, July 1, 2024		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2024
Securities available for sale:(2)
RMBS	$	304	$	2	$	11	$	0	$	0	$	0	$	(4)	$	2	$	(135)	$	180	$	2
CMBS	2		0		0		0		0		0		0		0		0		2		0
Total securities available for sale	306		2		11		0		0		0		(4)		2		(135)		182		2
Other assets:
Retained interests in securitizations	34		0		0		0		0		0		0		0		0		34		0
Net derivative assets (liabilities)(3)	69		(20)		0		0		0		4		(8)		0		0		45		(15)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2024
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2024(1)
(Dollars in millions)	Balance, January 1, 2024		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2024
Securities available for sale:(2)
RMBS	$	146	$	6	$	8	$	0	$	0	$	0	$	(9)	$	187	$	(158)	$	180	$	5
CMBS	132		0		(3)		0		0		0		(3)		0		(124)		2		0
Total securities available for sale	278		6		5		0		0		0		(12)		187		(282)		182		5
Other assets:
Retained interests in securitizations	35		(1)		0		0		0		0		0		0		0		34		(1)
Net derivative assets (liabilities)(3)	58		(17)		0		0		0		1		3		0		0		45		(18)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2023
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2023(1)
(Dollars in millions)	Balance, July 1, 2023		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2023
Securities available for sale:(2)
RMBS	$	206	$	2	$	(5)	$	0	$	0	$	0	$	(6)	$	2	$	(50)	$	149	$	2
CMBS	133		0		(6)		0		0		0		(1)		0		0		126		0
Total securities available for sale	339		2		(11)		0		0		0		(7)		2		(50)		275		2
Other assets:
Retained interests in securitizations	36		(1)		0		0		0		0		0		0		0		35		(1)
Net derivative assets (liabilities)(3)	64		(2)		0		0		0		3		18		(15)		0		68		4

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2023
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2023(1)
(Dollars in millions)	Balance, January 1, 2023		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2023
Securities available for sale:(2)
RMBS	$	236	$	6	$	(4)	$	0	$	0	$	0	$	(17)	$	47	$	(119)	$	149	$	5
CMBS	142		0		(12)		0		0		0		(4)		0		0		126		0
Total securities available for sale	378		6		(16)		0		0		0		(21)		47		(119)		275		5
Other assets:
Retained interests in securitizations	36		(1)		0		0		0		0		0		0		0		35		(1)
Net derivative assets (liabilities)(3)(4)	5		(20)		0		0		0		176		75		(167)		(1)		68		71

_________

(1)Realized gains (losses) on securities available for sale are included in net securities gains (losses) and retained interests in securitizations are reported as a component of non-interest income in our consolidated statements of income. Gains (losses) on derivatives are included as a component of net interest income or non-interest income in our consolidated statements of income.

(2)For both the three and nine months ended September 30, 2024, included in OCI related to Level 3 securities available for sale still held as of September 30, 2024 were net unrealized losses of $2 million. For the three and nine months ended September 30, 2023, included in OCI related to Level 3 securities available for sale still held as of September 30, 2023 were net unrealized losses of $9 million and $14 million, respectively.

(3)Includes derivative assets and liabilities of $613 million and $568 million, respectively, as of September 30, 2024 and $1.3 billion and $1.3 billion, respectively, as of September 30, 2023.

(4)Transfers into Level 3 primarily consist of term Secured Overnight Financing Rate (“SOFR”)-indexed interest rate derivatives.

Significant Level 3 Fair Value Asset and Liability Inputs

Generally, uncertainties in fair value measurements of financial instruments, such as changes in unobservable inputs, may have a significant impact on fair value. Certain of these unobservable inputs will, in isolation, have a directionally consistent impact on the fair value of the instrument for a given change in that input. Alternatively, the fair value of the instrument may move in an opposite direction for a given change in another input. In general, an increase in the discount rate, default rates, loss severity or credit spreads, in isolation, would result in a decrease in the fair value measurement. In addition, an increase in default rates would generally be accompanied by a decrease in recovery rates, slower prepayment rates and an increase in liquidity spreads, and would lead to a decrease in the fair value measurement.

Techniques and Inputs for Level 3 Fair Value Measurements

The following table presents the significant unobservable inputs used to determine the fair values of our Level 3 financial instruments on a recurring basis. We utilize multiple vendor pricing services to obtain fair value for our securities. Several of our vendor pricing services are only able to provide unobservable input information for a limited number of securities due to software licensing restrictions. Other vendor pricing services are able to provide unobservable input information for all securities for which they provide a valuation. As a result, the unobservable input information for the securities available for sale presented below represents a composite summary of all information we are able to obtain. The unobservable input information for all other Level 3 financial instruments is based on the assumptions used in our internal valuation models.

Table 12.3: Quantitative Information about Level 3 Fair Value Measurements

	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in millions)	Fair Value at September 30, 2024		Significant Valuation Techniques	Significant Unobservable Inputs	Range	Weighted Average(1)
Securities available for sale:
RMBS	$	180	Discounted cash flows (vendor pricing)	Yield Voluntary prepayment rate Default rate Loss severity	4-14% 0-12% 0-6% 25-80%	6% 7% 1% 61%
CMBS	2		Discounted cash flows (vendor pricing)	Yield	5-7%	7%
Other assets:
Retained interests in securitizations(2)	34		Discounted cash flows	Life of receivables (months) Voluntary prepayment rate Discount rate Default rate Loss severity	31-73 7-9% 5-14% 1-2% 46-155%	N/A
Net derivative assets (liabilities)	45		Discounted cash flows	Swap rates	3-5%	3%

	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in millions)	Fair Value at December 31, 2023		Significant Valuation Techniques	Significant Unobservable Inputs	Range	Weighted Average(1)
Securities available for sale:
RMBS	$	146	Discounted cash flows (vendor pricing)	Yield Voluntary prepayment rate Default rate Loss severity	2-19% 0-12% 0-10% 30-80%	7% 7% 1% 61%
CMBS	132		Discounted cash flows (vendor pricing)	Yield	5-7%	5%
Other assets:
Retained interests in securitizations(2)	35		Discounted cash flows	Life of receivables (months) Voluntary prepayment rate Discount rate Default rate Loss severity	33-69 9% 5-14% 2% 53-163%	N/A
Net derivative assets (liabilities)	58		Discounted cash flows	Swap rates	3-5%	4%

__________

(1)Weighted averages are calculated by using the product of the input multiplied by the relative fair value of the instruments.

(2)Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

We are required to measure and recognize certain assets at fair value on a nonrecurring basis on the consolidated balance sheets. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, from the application of lower of cost or fair value accounting or when we evaluate for impairment).

The following table presents the carrying value of the assets measured at fair value on a nonrecurring basis and still held as of September 30, 2024 and December 31, 2023, and for which a nonrecurring fair value measurement was recorded during the nine and twelve months then ended.

Table 12.4: Nonrecurring Fair Value Measurements

	September 30, 2024
	Estimated Fair Value Hierarchy				Total
(Dollars in millions)	Level 2		Level 3
Loans held for investment	$	0	$	738	$	738
Loans held for sale	10		0		10
Other assets(1)	0		100		100
Total	$	10	$	838	$	848

	December 31, 2023
	Estimated Fair Value Hierarchy				Total
(Dollars in millions)	Level 2		Level 3
Loans held for investment	$	0	$	545	$	545
Loans held for sale	37		0		37
Other assets(1)	0		214		214
Total	$	37	$	759	$	796

__________

(1)As of September 30, 2024, other assets includes investments accounted for under measurement alternative of $47 million, cost method investments of $1 million and repossessed assets of $52 million. As of December 31, 2023, other assets included investments accounted for under measurement alternative of $46 million, repossessed assets of $45 million and long-lived assets held for sale and right-of-use assets totaling $123 million.

In the above table, loans held for investment are generally valued based in part on the estimated fair value of the underlying collateral and the non-recoverable rate, which is considered to be a significant unobservable input. The non-recoverable rate ranged from 7% to 61%, with a weighted average of 19%, and from 0% to 100%, with a weighted average of 18%, as of September 30, 2024 and December 31, 2023, respectively. The weighted average non-recoverable rate is calculated based on the estimated market value of the underlying collateral. The significant unobservable inputs and related quantitative information related to fair value of the other assets are not meaningful to disclose as they vary significantly across properties and collateral.

The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that are still held at September 30, 2024 and 2023.

Table 12.5: Nonrecurring Fair Value Measurements Included in Earnings

	Total Gains (Losses)
	Nine Months Ended September 30,
(Dollars in millions)	2024		2023
Loans held for investment	$	(224)	$	(315)
Loans held for sale	(6)		0
Other assets(1)	(64)		(52)
Total	$	(294)	$	(367)

__________

(1)Other assets primarily include fair value adjustments related to repossessed assets and equity investments accounted for under the measurement alternative.

Fair Value of Financial Instruments

The following table presents the carrying value and estimated fair value, including the level within the fair value hierarchy, of our financial instruments that are not measured at fair value on a recurring basis on our consolidated balance sheets as of September 30, 2024 and December 31, 2023.

Table 12.6: Fair Value of Financial Instruments

	September 30, 2024
	Carrying Value		Estimated Fair Value		Estimated Fair Value Hierarchy
(Dollars in millions)					Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	49,298	$	49,298	$	3,976	$	45,322	$	0
Restricted cash for securitization investors	421		421		421		0		0
Net loans held for investment	303,709		308,901		0		0		308,901
Loans held for sale	19		19		0		19		0
Interest receivable	2,577		2,577		0		2,577		0
Other investments(1)	1,330		1,330		0		1,330		0
Financial liabilities:
Deposits with defined maturities	77,678		77,893		0		77,893		0
Securitized debt obligations	15,881		15,939		0		15,939		0
Senior and subordinated notes	32,911		33,694		0		33,694		0
Federal funds purchased and securities loaned or sold under agreements to repurchase	520		520		0		520		0
Interest payable	705		705		0		705		0

	December 31, 2023
	Carrying Value		Estimated Fair Value		Estimated Fair Value Hierarchy
(Dollars in millions)					Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	43,297	$	43,297	$	4,903	$	38,394	$	0
Restricted cash for securitization investors	458		458		458		0		0
Net loans held for investment	305,176		308,044		0		0		308,044
Loans held for sale	507		515		0		515		0
Interest receivable	2,478		2,478		0		2,478		0
Other investments(1)	1,329		1,329		0		1,329		0
Financial liabilities:
Deposits with defined maturities	83,014		82,990		0		82,990		0
Securitized debt obligations	18,043		18,067		0		18,067		0
Senior and subordinated notes	31,248		31,524		0		31,524		0
Federal funds purchased and securities loaned or sold under agreements to repurchase	538		538		0		538		0
Interest payable	649		649		0		649		0

__________

(1)Other investments include FHLB and Federal Reserve stock. These investments are included in other assets on our consolidated balance sheets.

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Business Segments and Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Business Segments and Revenue from Contracts with Customers

NOTE 13—BUSINESS SEGMENTS AND REVENUE FROM CONTRACTS WITH CUSTOMERS

Our principal operations are organized into three major business segments, which are defined primarily based on the products and services provided or the types of customers served: Credit Card, Consumer Banking and Commercial Banking. The operations of acquired businesses have been integrated into or managed as a part of our existing business segments. Certain activities that are not part of a business segment are included in the Other category, such as the management of our corporate investment portfolio and asset/liability positions performed by our centralized Corporate Treasury group and any residual tax expense or benefit beyond what is assessed to our business segments in order to arrive at the consolidated effective tax rate. The Other category also includes unallocated corporate expenses that do not directly support the operations of the business segments or for which the business segments are not considered financially accountable in evaluating their performance, such as certain restructuring charges and integration expenses related to the agreement to acquire Discover.

Basis of Presentation

We report the results of each of our business segments on a continuing operations basis. The results of our individual businesses reflect the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources.

Business Segment Reporting Methodology

The results of our business segments are intended to present each segment as if it were a stand-alone business. Our internal management and reporting process used to derive our segment results employs various allocation methodologies, including funds transfer pricing, to assign certain balance sheet assets, deposits and other liabilities and their related revenues and expenses directly or indirectly attributable to each business segment. Our funds transfer pricing process managed by our centralized Corporate Treasury group provides a funds credit for sources of funds, such as deposits generated by our Consumer Banking and Commercial Banking businesses, and a charge for the use of funds by each segment. The allocation is unique to each business segment and acquired business and is based on the composition of assets and liabilities. The funds transfer pricing process considers the interest rate and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically the methodology and assumptions utilized in the funds transfer pricing process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the business segments. Due to the integrated nature of our business segments, estimates and judgments have been made in allocating certain revenue and expense items. Transactions between segments are based on specific criteria or approximate market rates. We regularly assess the assumptions, methodologies and reporting classifications used for segment reporting, which may result in the implementation of refinements or changes in future periods. We provide additional information on the allocation methodologies used to derive our business segment results in “Part II—Item 8. Financial Statements and Supplementary Data—Note 17—Business Segments and Revenue from Contracts with Customers” in our 2023 Form 10-K.

Segment Results and Reconciliation

We may periodically change our business segments or reclassify business segment results based on modifications to our management reporting methodologies or changes in organizational alignment. The following table presents our business segment results for the three and nine months ended September 30, 2024 and 2023, selected balance sheet data as of September 30, 2024 and 2023, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits.

Table 13.1: Segment Results and Reconciliation

	Three Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	5,743	$	2,028	$	596	$	(291)	$	8,076
Non-interest income (loss)	1,509		182		292		(45)		1,938
Total net revenue (loss)(2)	7,252		2,210		888		(336)		10,014
Provision (benefit) for credit losses	2,084		351		48		(1)		2,482
Non-interest expense	3,367		1,331		495		121		5,314
Income (loss) from continuing operations before income taxes	1,801		528		345		(456)		2,218
Income tax provision (benefit)	427		125		82		(193)		441
Income (loss) from continuing operations, net of tax	$	1,374	$	403	$	263	$	(263)	$	1,777
Loans held for investment	$	156,651	$	76,758	$	86,834	$	0	$	320,243
Deposits	0		309,569		30,598		13,464		353,631

	Nine Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	16,309	$	6,064	$	1,804	$	(1,067)	$	23,110
Non-interest income (loss)	4,491		513		844		(36)		5,812
Total net revenue (loss)(2)	20,800		6,577		2,648		(1,103)		28,922
Provision (benefit) for credit losses	7,888		1,107		80		(1)		9,074
Non-interest expense	9,730		3,827		1,493		347		15,397
Income (loss) from continuing operations before income taxes	3,182		1,643		1,075		(1,449)		4,451
Income tax provision (benefit)	756		388		254		(601)		797
Income (loss) from continuing operations, net of tax	$	2,426	$	1,255	$	821	$	(848)	$	3,654
Loans held for investment	$	156,651	$	76,758	$	86,834	$	0	$	320,243
Deposits	0		309,569		30,598		13,464		353,631

	Three Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	5,114	$	2,133	$	621	$	(445)	$	7,423
Non-interest income	1,513		142		288		0		1,943
Total net revenue (loss)(2)	6,627		2,275		909		(445)		9,366
Provision for credit losses	1,953		213		116		2		2,284
Non-interest expense	3,015		1,262		512		71		4,860
Income (loss) from continuing operations before income taxes	1,659		800		281		(518)		2,222
Income tax provision (benefit)	393		189		67		(217)		432
Income (loss) from continuing operations, net of tax	$	1,266	$	611	$	214	$	(301)	$	1,790
Loans held for investment	$	146,783	$	76,844	$	91,153	$	0	$	314,780
Deposits	0		290,789		36,035		19,187		346,011

                                                                                                                                                                                                                                                                                                                                                                                                                                    

	Nine Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	14,498	$	6,762	$	1,901	$	(1,439)	$	21,722
Non-interest income	4,375		426		757		1		5,559
Total net revenue (loss)(2)	18,873		7,188		2,658		(1,438)		27,281
Provision for credit losses	6,298		747		521		3		7,569
Non-interest expense	9,073		3,776		1,524		226		14,599
Income (loss) from continuing operations before income taxes	3,502		2,665		613		(1,667)		5,113
Income tax provision (benefit)	830		629		145		(672)		932
Income (loss) from continuing operations, net of tax	$	2,672	$	2,036	$	468	$	(995)	$	4,181
Loans held for investment	$	146,783	$	76,844	$	91,153	$	0	$	314,780
Deposits	0		290,789		36,035		19,187		346,011

_________

(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(2)Total net revenue was reduced by $624 million and $1.9 billion in the three and nine months ended September 30, 2024, respectively, and $449 million and $1.3 billion in the three and nine months ended September 30, 2023, respectively, for credit card finance charges and fees charged off as uncollectible.

Revenue from Contracts with Customers

The majority of our revenue from contracts with customers consists of interchange fees, service charges and other customer-related fees, and other contract revenue. Interchange fees are primarily from our Credit Card business and are recognized upon settlement with the interchange networks, net of rewards earned by customers. Service charges and other customer-related fees within our Consumer Banking business are primarily related to fees earned on consumer deposit accounts for account maintenance and various transaction-based services such as automated teller machine (“ATM”) usage. Service charges and other customer-related fees within our Commercial Banking business are mostly related to fees earned on treasury management and capital markets services. Other contract revenue in our Credit Card business consists primarily of revenue from our partnership arrangements. Other contract revenue in our Consumer Banking business consists primarily of revenue earned from services provided to auto industry participants. Revenue from contracts with customers is included in non-interest income in our consolidated statements of income.

The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the three and nine months ended September 30, 2024 and 2023.

Table 13.2: Revenue from Contracts with Customers and Reconciliation to Segment Results

	Three Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,086	$	113	$	28	$	1	$	1,228
Service charges and other customer-related fees	0		23		92		0		115
Other	67		36		1		0		104
Total contract revenue	1,153		172		121		1		1,447
Revenue (reduction) from other sources	356		10		171		(46)		491
Total non-interest income (loss)	$	1,509	$	182	$	292	$	(45)	$	1,938

	Nine Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	3,222	$	318	$	81	$	1	$	3,622
Service charges and other customer-related fees	0		66		239		0		305
Other	271		101		6		0		378
Total contract revenue	3,493		485		326		1		4,305
Revenue (reduction) from other sources	998		28		518		(37)		1,507
Total non-interest income (loss)	$	4,491	$	513	$	844	$	(36)	$	5,812

	Three Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,115	$	92	$	27	$	0	$	1,234
Service charges and other customer-related fees	0		21		78		0		99
Other	111		28		3		0		142
Total contract revenue	1,226		141		108		0		1,475
Revenue from other sources	287		1		180		0		468
Total non-interest income	$	1,513	$	142	$	288	$	0	$	1,943

	Nine Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	3,251	$	270	$	64	$	1	$	3,586
Service charges and other customer-related fees	0		64		173		(1)		236
Other	257		74		16		0		347
Total contract revenue	3,508		408		253		0		4,169
Revenue from other sources	867		18		504		1		1,390
Total non-interest income	$	4,375	$	426	$	757	$	1	$	5,559

__________

(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(2)Interchange fees are presented net of customer reward expenses.

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Commitments, Contingencies, Guarantees and Others

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies, Guarantees and Others

NOTE 14—COMMITMENTS, CONTINGENCIES, GUARANTEES AND OTHERS

Commitments to Lend

Our unfunded lending commitments primarily consist of credit card lines, loan commitments to customers of both our Commercial Banking and Consumer Banking businesses, as well as standby and commercial letters of credit. These commitments, other than credit card lines and certain other unconditionally cancellable lines of credit, are legally binding conditional agreements that have fixed expirations or termination dates and specified interest rates and purposes. The contractual amount of these commitments represents the maximum possible credit risk to us should the counterparty draw upon the commitment. We generally manage the potential risk of unfunded lending commitments by limiting the total amount of arrangements, monitoring the size and maturity structure of these portfolios and applying the same credit standards for all of our credit activities.

For unused credit card lines, we have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time. Commitments to extend credit other than credit card lines generally require customers to maintain certain credit standards. Collateral requirements and loan-to-value (“LTV”) ratios are the same as those for funded transactions and are established based on management’s credit assessment of the customer. These commitments may expire without being drawn upon; therefore, the total commitment amount does not necessarily represent future funding requirements.

We also issue letters of credit, such as financial standby, performance standby and commercial letters of credit, to meet the financing needs of our customers. Standby letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third party in a borrowing arrangement. Commercial letters of credit are short-term commitments issued primarily to facilitate trade finance activities for customers and are generally collateralized by the goods being shipped to the customer. These collateral requirements are similar to those for funded transactions and are established based on management’s credit assessment of the customer. Management conducts regular reviews of all outstanding letters of credit and the results of these reviews are considered in assessing the adequacy of reserves for unfunded lending commitments.

The following table presents the contractual amount and carrying value of our unfunded lending commitments as of September 30, 2024 and December 31, 2023. The carrying value represents our reserve and deferred revenue on legally binding commitments.

Table 14.1: Unfunded Lending Commitments

	Contractual Amount				Carrying Value
(Dollars in millions)	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Credit card lines	$	412,905	$	392,867	N/A		N/A
Other loan commitments(1)	44,698		46,951		$	72	$	99
Standby letters of credit and commercial letters of credit(2)	1,266		1,465		27		23
Total unfunded lending commitments	$	458,869	$	441,283	$	99	$	122

__________

(1)Includes $5.0 billion and $4.7 billion of advised lines of credit as of September 30, 2024 and December 31, 2023, respectively.

(2)These financial guarantees have expiration dates that range from 2025 to 2027 as of September 30, 2024.

Loss Sharing Agreements

Within our Commercial Banking business, we originate multifamily commercial real estate loans with the intent to sell them to the GSEs. We enter into loss sharing agreements with the GSEs upon the sale of these originated loans. Beginning January 1, 2020, we elected the fair value option on new loss sharing agreements entered into. Unrealized gains and losses are recorded in other non-interest income in our consolidated statements of income. For those loss sharing agreements entered into as of and prior to December 31, 2019, we amortize the liability recorded at inception into non-interest income as we are released from risk of having to make a payment and record our estimate of expected credit losses each period through the provision for credit losses in our consolidated statements of income. The liability recognized on our consolidated balance sheets for these loss sharing agreements was $145 million and $137 million as of September 30, 2024 and December 31, 2023, respectively. See “Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments” for information related to our credit card partnership loss sharing arrangements.

Litigation

In accordance with the current accounting standards for loss contingencies, we establish reserves for litigation related matters that arise from the ordinary course of our business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated. None of the amounts we currently have recorded individually or in the aggregate are considered to be material to our financial condition. Litigation claims and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance. Below we provide a description of potentially material legal proceedings and claims.

For some of the matters disclosed below, we are able to estimate reasonably possible losses above existing reserves, and for other disclosed matters, such an estimate is not possible at this time. For those matters below where an estimate is possible, management currently estimates the reasonably possible future losses beyond our reserves as of September 30, 2024 are approximately $400 million. Our reserve and reasonably possible loss estimates involve considerable judgment and reflect that there is significant uncertainty regarding numerous factors that may impact the ultimate loss levels. Notwithstanding our attempt to estimate a reasonably possible range of loss beyond our current accrual levels for some litigation matters based on current information, it is possible that actual future losses will exceed both the current accrual level and reasonably possible losses disclosed here. Given the inherent uncertainties involved in these matters and the very large or indeterminate damages sought in some of these, there is significant uncertainty as to the ultimate liability we may incur from these litigation matters and an adverse outcome in one or more of these matters could be material to our results of operations or cash flows for any particular reporting period.

Interchange Litigation

In 2005, a putative class of retail merchants filed antitrust lawsuits against MasterCard and Visa and several issuing banks, including Capital One, seeking both injunctive relief and monetary damages for an alleged conspiracy by defendants to fix the level of interchange fees. The Visa and MasterCard payment networks and issuing banks entered into settlement and judgment sharing agreements allocating the liabilities of any judgment or settlement arising from all interchange-related cases.

The lawsuits were consolidated before the U.S. District Court for the Eastern District of New York for certain purposes and were settled in 2012. The class settlement, however, was invalidated by the United States Court of Appeals for the Second Circuit in June 2016, and the suit was bifurcated into separate class actions seeking injunctive and monetary relief, respectively. In addition, numerous merchant groups opted out of the 2012 settlement. 

The monetary relief class action settled for $5.5 billion and was approved by the District Court in December 2019. The Second Circuit affirmed the settlement in March 2023, and it is final. Some of the merchants that opted out of the monetary relief class have brought cases, and some of those cases have settled and some remain pending. Visa created a litigation escrow account following its initial public offering of stock in 2008 that funds the portion of these settlements attributable to Visa-allocated transactions. Any settlement amounts based on MasterCard-allocated transactions that have not already been paid are reflected in our reserves. Visa and MasterCard reached a settlement with the injunctive relief class and filed a motion for preliminary approval, which was denied by the District Court in June 2024. The parties will continue to litigate unless a settlement is reached and approved.

Cybersecurity Incident

On July 29, 2019, we announced that on March 22 and 23, 2019 an outside individual gained unauthorized access to our systems. This individual obtained certain types of personal information relating to people who had applied for our credit card products and to our credit card customers (the “2019 Cybersecurity Incident”). As a result of the 2019 Cybersecurity Incident, we have been subject to numerous legal proceedings and other inquiries and could be the subject of additional proceedings and inquiries in the future.

Consumer class actions. We are named as a defendant in 4 putative consumer class action cases in Canadian courts alleging harm from the 2019 Cybersecurity Incident and seeking various remedies, including monetary and injunctive relief. The lawsuits allege breach of contract, negligence, violations of various privacy laws and a variety of other legal causes of action. In the second quarter of 2022, a trial court in British Columbia preliminarily certified a class of all impacted Canadian consumers except those in Quebec. The preliminary certification decision in British Columbia was appealed, with both sides contesting portions of the ruling. On July 4, 2024, the British Columbia Court of Appeals denied both parties’ appeals. In the third quarter of 2023, a trial court in Quebec preliminarily authorized a class of all impacted consumers in Quebec. This

decision also has been appealed. The final two putative class actions, both of which are pending in Alberta, are continuing in parallel, but currently remain at a preliminary stage. A fifth putative class action in Ontario was dismissed with prejudice and all appeals of that decision have now been exhausted.

Governmental inquiries. In August 2020, we entered into consent orders with the Board of Governors of the Federal Reserve System (“Federal Reserve”) and the Office of the Comptroller of the Currency (“OCC”) resulting from regulatory reviews of the 2019 Cybersecurity Incident and relating to ongoing enhancements of our cybersecurity and operational risk management processes. We paid an $80 million penalty to the U.S. Treasury as part of the OCC agreement. The Federal Reserve agreement did not contain a monetary penalty. The OCC lifted its consent order on August 31, 2022 and the Federal Reserve lifted its consent order on July 5, 2023. On August 12, 2019, Canada’s Office of Privacy Commissioner (“OPC”) also initiated an investigation into the 2019 Cybersecurity Incident. That investigation concluded in April 2024 with no further action required.

U.K. PPI Litigation

In the U.K., we previously sold payment protection insurance (“PPI”). For several years leading up to the claims submission deadline of August 29, 2019 (as set by the U.K. Financial Conduct Authority (“FCA”)), we received customer complaints and regulatory claims relating to PPI. COEP has materially resolved the PPI complaints and regulatory claims received prior to the deadline. Some of the claimants in the U.K. PPI regulatory claims process have subsequently initiated legal proceedings, seeking additional redress. We are responding to these proceedings as we receive them.

Savings Account Litigation and Related Government Investigation

On July 10, 2023, we were sued in a putative class action in the Eastern District of Virginia by savings account holders alleging breach of contract and a variety of other causes of action relating to our introduction of a new savings account product with a higher interest rate than existing savings account products (“Savings Account Litigation”). Since the original suit, we have also been sued in six similar putative class actions in federal courts in California, Illinois, Ohio, Virginia, New Jersey and New York. On March 20, 2024, we filed with the Judicial Panel on Multidistrict Litigation a motion to consolidate and transfer related actions to the Eastern District of Virginia. In June 2024, the Judicial Panel granted the motion and transferred the related actions to the Eastern District of Virginia. Plaintiffs filed a consolidated complaint on July 1, 2024 and the court set a trial date in July 2025. We filed a motion to dismiss the consolidated complaint, which is fully briefed and pending with the court.

In August 2024, we received a Civil Investigative Demand from the Consumer Financial Protection Bureau (“CFPB”) relating to the savings account products at issue in the litigation. In October 2024, the CFPB issued a Notice of Opportunity to Respond and Advise (“NORA”) letter indicating that the CFPB is considering an enforcement action against us on similar grounds as the claims in the Savings Account Litigation. We are responding to the NORA letter and it is possible the CFPB will pursue an enforcement action, including possible litigation, at the end of the NORA process.

Other Pending and Threatened Litigation

In addition, we are commonly subject to various pending and threatened legal actions relating to the conduct of our normal business activities. In the opinion of management, the ultimate aggregate liability, if any, arising out of all such other pending or threatened legal actions is not expected to be material to our consolidated financial position or our results of operations.

Other Contingencies

Deposit Insurance Assessments

On November 16, 2023, the Federal Deposit Insurance Corporation (“FDIC”) finalized a rule to implement a special assessment to recover the loss to the Deposit Insurance Fund (“DIF”) arising from the protection of uninsured depositors in connection with the systemic risk determination announced on March 12, 2023, following the closures of Silicon Valley Bank and Signature Bank. In December 2023, the FDIC provided notification that they would be collecting the special assessment at an annual rate of approximately 13.4 basis points (“bps”) over eight quarterly collection periods, beginning with the first quarter of 2024 with the first payment due on June 28, 2024. In June 2024, the FDIC provided notification that the collection period will be extended an additional two quarters beyond the initial eight quarterly collection periods at a lower annual rate. The special assessment base is equal to an insured depository institution’s estimated uninsured deposits reported on its Consolidated Reports of Condition and Income as of December 31, 2022 (“2022 Call Report”), adjusted to exclude the first $5 billion of uninsured deposits. We recognized $289 million in operating expense in the fourth quarter of 2023 associated with the special assessment

based on our 2022 Call Report, which was revised and refiled during 2023. We recognized incremental operating expenses in 2024 as a result of updates from the FDIC related to our portion of the FDIC’s estimate of relevant DIF losses. We have recognized $330 million of operating expenses related to the special assessment as of September 30, 2024.

It is reasonably possible amendments will be needed to our 2022 Call Report due to future legal and regulatory developments, which could result in additional expenses associated with the special assessment. The ultimate amount of expenses associated with the special assessment will also be impacted by the finalization of the losses incurred by the FDIC in the resolutions of Silicon Valley Bank and Signature Bank. The amount of reasonably possible additional special assessment fees beyond our existing accrual due to these factors is approximately $200 million.

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income	$ 1,777	$ 1,790	$ 3,654	$ 4,181

XML

Insider Trading Arrangements

3 Months Ended

9 Months Ended

Sep. 30, 2024

shares

Sep. 30, 2024

shares

Trading Arrangements, by Individual

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Mark Daniel Mouadeb [Member]

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

Mark Daniel Mouadeb, our President, U.S. Card, entered into a pre-arranged stock trading plan on July 25, 2024. Mr. Mouadeb’s plan provides for the associated sale of up to 1,993.795 shares of Capital One common stock in amounts and prices set forth in the plan and terminates on the earlier of the date all shares under the plan are sold and December 31, 2024.

Name

Mark Daniel Mouadeb

Title

President

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

July 25, 2024

Expiration Date

December 31, 2024

Arrangement Duration

159 days

Aggregate Available

1,993.795

1,993.795

Robert M. Alexander [Member]

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

Robert M. Alexander, our Chief Information Officer, entered into a pre-arranged stock trading plan on August 8, 2024. Mr. Alexander’s plan provides for the associated sale of up to 16,594 shares of Capital One common stock in amounts and prices set forth in the plan and terminates on the earlier of the date all shares under the plan are sold and October 29, 2025.

Name

Robert M. Alexander

Title

Chief Information Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

August 8, 2024

Expiration Date

October 29, 2025

Arrangement Duration

447 days

Aggregate Available

16,594

16,594

Michael Zamsky [Member]

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

Michael Zamsky, our Chief Credit and Financial Risk Officer, entered into a pre-arranged stock trading plan on August 13, 2024. Mr. Zamsky’s plan provides for the associated sale of up to 20,101 shares of Capital One common stock in amounts and prices set forth in the plan and terminates on the earlier of the date all shares under the plan are sold and May 12, 2025.

Name

Michael Zamsky

Title

Chief Credit and Financial Risk Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

August 13, 2024

Expiration Date

May 12, 2025

Arrangement Duration

272 days

Aggregate Available

20,101

20,101

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”).We report the results of each of our business segments on a continuing operations basis. The results of our individual businesses reflect the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information.

New Adopted Accounting Standards During the Three Months Ended March 31, 2024

Newly Adopted Accounting Standards During the Nine Months Ended September 30, 2024

Standard	Guidance	Adoption Timing and Financial Statement Impacts
Tax Credit Investments ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023	Permits entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method, if certain criteria are met. Previously, only Low-Income Housing Tax Credit investments were eligible for application of the proportional amortization method.	We adopted this standard on its effective date of January 1, 2024 using a modified retrospective transition method, which results in a cumulative-effect adjustment to retained earnings in the period of adoption. Our adoption of this standard did not have a material impact on our consolidated financial statements. See “Consolidated Statements of Changes in Stockholders’ Equity” and “Note 6—Variable Interest Entities and Securitizations” for additional disclosures.

Balance Sheet Offsetting of Financial Assets and Liabilities

Balance Sheet Offsetting of Financial Assets and Liabilities

Derivative contracts and repurchase agreements that we execute bilaterally in the OTC market are generally governed by enforceable master netting agreements where we generally have the right to offset exposure with the same counterparty. Either counterparty can generally request to net settle all contracts through a single payment upon default on, or termination of, any one contract. We elect to offset the derivative assets and liabilities under master netting agreements for balance sheet presentation where a right of setoff exists. For derivative contracts entered into under master netting agreements for which we have not been able to confirm the enforceability of the setoff rights, or those not subject to master netting agreements, we do not offset our derivative positions for balance sheet presentation.

Revenue from Contracts with Customers

Revenue from Contracts with Customers

The majority of our revenue from contracts with customers consists of interchange fees, service charges and other customer-related fees, and other contract revenue. Interchange fees are primarily from our Credit Card business and are recognized upon settlement with the interchange networks, net of rewards earned by customers. Service charges and other customer-related fees within our Consumer Banking business are primarily related to fees earned on consumer deposit accounts for account maintenance and various transaction-based services such as automated teller machine (“ATM”) usage. Service charges and other customer-related fees within our Commercial Banking business are mostly related to fees earned on treasury management and capital markets services. Other contract revenue in our Credit Card business consists primarily of revenue from our partnership arrangements. Other contract revenue in our Consumer Banking business consists primarily of revenue earned from services provided to auto industry participants. Revenue from contracts with customers is included in non-interest income in our consolidated statements of income.

Fair Value

Fair value, also referred to as an exit price, is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. The fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are described below:

Level 1:	Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2:	Valuation is based on observable market-based inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:	Valuation is generated from techniques that use significant assumptions not observable in the market. Valuation techniques include pricing models, discounted cash flow (“DCF”) methodologies or similar techniques.

The accounting guidance for fair value measurements requires that we maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. We consider all available information, including observable market data, indications of market liquidity and orderliness, and our understanding of the valuation techniques and significant inputs. Based upon the specific facts and circumstances of each instrument or instrument category, judgments are made regarding the significance of the observable or unobservable inputs to the instruments’ fair value measurement in its entirety. If unobservable inputs are considered significant, the instrument is classified as Level 3. The process for determining fair value using unobservable inputs is generally more subjective and involves a high degree of management judgment and assumptions. The accounting guidance provides for the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at inception of the contract and record any subsequent changes in fair value in earnings.

The determination and classification of financial instruments in the fair value hierarchy is performed at the end of each reporting period. For additional information on the valuation techniques used in estimating the fair value of our financial assets and liabilities on a recurring basis, see “Part II—Item 8. Financial Statements and Supplementary Data—Note 16—Fair Value Measurement” in our 2023 Form 10-K.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

We are required to measure and recognize certain assets at fair value on a nonrecurring basis on the consolidated balance sheets. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, from the application of lower of cost or fair value accounting or when we evaluate for impairment).

Business Segment Reporting Methodology

The results of our business segments are intended to present each segment as if it were a stand-alone business. Our internal management and reporting process used to derive our segment results employs various allocation methodologies, including funds transfer pricing, to assign certain balance sheet assets, deposits and other liabilities and their related revenues and expenses directly or indirectly attributable to each business segment. Our funds transfer pricing process managed by our centralized Corporate Treasury group provides a funds credit for sources of funds, such as deposits generated by our Consumer Banking and Commercial Banking businesses, and a charge for the use of funds by each segment. The allocation is unique to each business segment and acquired business and is based on the composition of assets and liabilities. The funds transfer pricing process considers the interest rate and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically the methodology and assumptions utilized in the funds transfer pricing process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the business segments. Due to the integrated nature of our business segments, estimates and judgments have been made in allocating certain revenue and expense items. Transactions between segments are based on specific criteria or approximate market rates. We regularly assess the assumptions, methodologies and reporting classifications used for segment reporting, which may result in the implementation of refinements or changes in future periods. We provide additional information on the allocation methodologies used to derive our business segment results in “Part II—Item 8. Financial Statements and Supplementary Data—Note 17—Business Segments and Revenue from Contracts with Customers” in our 2023 Form 10-K.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Accounting Standards Update and Change in Accounting Principle

Standard	Guidance	Adoption Timing and Financial Statement Impacts
Tax Credit Investments ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023	Permits entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method, if certain criteria are met. Previously, only Low-Income Housing Tax Credit investments were eligible for application of the proportional amortization method.	We adopted this standard on its effective date of January 1, 2024 using a modified retrospective transition method, which results in a cumulative-effect adjustment to retained earnings in the period of adoption. Our adoption of this standard did not have a material impact on our consolidated financial statements. See “Consolidated Statements of Changes in Stockholders’ Equity” and “Note 6—Variable Interest Entities and Securitizations” for additional disclosures.

XML

Investment Securities (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-Sale Securities

The table below presents the amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value aggregated by major security type as of September 30, 2024 and December 31, 2023. Accrued interest receivable of $264 million and $227 million as of September 30, 2024 and December 31, 2023, respectively, is not included in the table below.

Table 3.1: Investment Securities Available for Sale

	September 30, 2024
(Dollars in millions)	Amortized Cost		Allowance  for Credit  Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Investment securities available for sale:
U.S. Treasury securities	$	6,035	$	0	$	10	$	(13)	$	6,032
RMBS:
Agency	72,576		0		205		(7,130)		65,651
Non-agency	576		(3)		86		(3)		656
Total RMBS	73,152		(3)		291		(7,133)		66,307
Agency CMBS	8,613		0		35		(465)		8,183
Other securities(1)	2,971		0		7		0		2,978
Total investment securities available for sale	$	90,771	$	(3)	$	343	$	(7,611)	$	83,500

	December 31, 2023
(Dollars in millions)	Amortized Cost		Allowance  for Credit  Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Investment securities available for sale:
U.S. Treasury securities	$	5,330	$	0	$	1	$	(49)	$	5,282
RMBS:
Agency	71,294		0		104		(8,450)		62,948
Non-agency	610		(4)		89		(5)		690
Total RMBS	71,904		(4)		193		(8,455)		63,638
Agency CMBS	8,961		0		14		(652)		8,323
Other securities(1)	1,868		0		6		0		1,874
Total investment securities available for sale	$	88,063	$	(4)	$	214	$	(9,156)	$	79,117

__________    

(1)Includes $2.4 billion and $1.4 billion of asset-backed securities (“ABS”) as of September 30, 2024 and December 31, 2023, respectively. The remaining amount is primarily comprised of supranational bonds, foreign government bonds and U.S. agency debt bonds.

Schedule of Available-for-Sale Securities in Gross Unrealized Loss Position

The table below provides the gross unrealized losses and fair value of our securities available for sale aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2024 and December 31, 2023. The amounts include securities available for sale without an allowance for credit losses.

Table 3.2: Securities in a Gross Unrealized Loss Position

	September 30, 2024
	Less than 12 Months				12 Months or Longer				Total
(Dollars in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Investment securities available for sale without an allowance for credit losses:
U.S. Treasury securities	$	3,772	$	(4)	$	1,331	$	(9)	$	5,103	$	(13)
RMBS:
Agency	1,807		(10)		52,413		(7,120)		54,220		(7,130)
Non-agency	4		0		10		0		14		0
Total RMBS	1,811		(10)		52,423		(7,120)		54,234		(7,130)
Agency CMBS	192		(1)		5,966		(464)		6,158		(465)
Other securities	776		0		4		0		780		0
Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(1)	$	6,551	$	(15)	$	59,724	$	(7,593)	$	66,275	$	(7,608)

	December 31, 2023
	Less than 12 Months				12 Months or Longer				Total
(Dollars in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Investment securities available for sale without an allowance for credit losses:
U.S. Treasury securities	$	733	$	0	$	2,242	$	(49)	$	2,975	$	(49)
RMBS:
Agency	3,511		(43)		53,987		(8,407)		57,498		(8,450)
Non-agency	1		0		13		(1)		14		(1)
Total RMBS	3,512		(43)		54,000		(8,408)		57,512		(8,451)
Agency CMBS	547		(7)		6,465		(645)		7,012		(652)
Other securities	276		0		4		0		280		0
Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(1)	$	5,068	$	(50)	$	62,711	$	(9,102)	$	67,779	$	(9,152)

__________

(1)    Consists of approximately 2,500 and 2,740 securities in gross unrealized loss positions as of September 30, 2024 and December 31, 2023, respectively.

Schedule of Contractual Maturities for Securities

The table below summarizes, as of September 30, 2024, the fair value of our investment securities by major security type and contractual maturity as well as the total fair value, amortized cost and weighted-average yields of our investment securities by contractual maturity. Since borrowers may have the right to call or prepay certain obligations, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. The weighted-average yield below represents the effective yield for the investment securities presented on a pre-tax basis and is calculated based on the amortized cost of each security, inclusive of the contractual coupon, the impact of any premium amortization or discount accretion and any hedge accounting relationships.

Table 3.3: Contractual Maturities and Weighted-Average Yields of Securities

	September 30, 2024
(Dollars in millions)	Due in 1 Year or Less		Due > 1 Year through 5 Years		Due > 5 Years through 10 Years		Due > 10 Years		Total
Fair value of securities available for sale:
U.S. Treasury securities	$	3,334	$	1,254	$	1,444	$	0	$	6,032
RMBS(1):
Agency	1		74		1,099		64,477		65,651
Non-agency	0		0		12		644		656
Total RMBS	1		74		1,111		65,121		66,307
Agency CMBS(1)	515		2,930		2,758		1,980		8,183
Other securities	344		2,617		17		0		2,978
Total securities available for sale	$	4,194	$	6,875	$	5,330	$	67,101	$	83,500
Amortized cost of securities available for sale	$	4,204	$	6,980	$	5,569	$	74,018	$	90,771
Weighted-average yield for securities available for sale	4.74%		4.07%		3.89%		3.16%		3.35%

__________

(1)As of September 30, 2024, the weighted-average expected maturities of RMBS and Agency CMBS were 7.4 years and 4.9 years, respectively.

XML

Loans (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Loan Portfolio Composition and Aging Analysis

The table below presents the composition and aging analysis of our loans held for investment portfolio as of September 30, 2024 and December 31, 2023. The delinquency aging includes all past due loans, both performing and nonperforming.

Table 4.1: Loan Portfolio Composition and Aging Analysis

	September 30, 2024
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	142,633	$	1,982	$	1,469	$	3,316	$	6,767	$	149,400
International card businesses	6,914		116		75		146		337		7,251
Total credit card	149,547		2,098		1,544		3,462		7,104		156,651
Consumer Banking:
Auto	70,682		2,895		1,452		476		4,823		75,505
Retail banking	1,229		13		2		9		24		1,253
Total consumer banking	71,911		2,908		1,454		485		4,847		76,758
Commercial Banking:
Commercial and multifamily real estate	32,016		114		20		49		183		32,199
Commercial and industrial	54,320		114		54		147		315		54,635
Total commercial banking	86,336		228		74		196		498		86,834
Total loans(1)	$	307,794	$	5,234	$	3,072	$	4,143	$	12,449	$	320,243
% of Total loans	96.11%		1.64%		0.96%		1.29%		3.89%		100.00%

    

	December 31, 2023
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	140,860	$	1,968	$	1,471	$	3,367	$	6,806	$	147,666
International card businesses	6,552		116		76		137		329		6,881
Total credit card	147,412		2,084		1,547		3,504		7,135		154,547
Consumer Banking:
Auto	68,768		3,268		1,555		484		5,307		74,075
Retail banking	1,329		15		3		15		33		1,362
Total consumer banking	70,097		3,283		1,558		499		5,340		75,437

	December 31, 2023
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Commercial Banking:
Commercial and multifamily real estate	34,325		0		14		107		121		34,446
Commercial and industrial	55,861		0		0		181		181		56,042
Total commercial banking	90,186		0		14		288		302		90,488
Total loans(1)	$	307,695	$	5,367	$	3,119	$	4,291	$	12,777	$	320,472
% of Total loans	96.01%		1.68%		0.97%		1.34%		3.99%		100.00%

__________

(1)Loans include unamortized premiums, discounts, and deferred fees and costs totaling $1.3 billion and $1.4 billion as of September 30, 2024 and December 31, 2023, respectively.

90 Plus Day Delinquent Loans Accruing Interest and Nonperforming Loans

The following table presents our loans held for investment that are 90 days or more past due that continue to accrue interest, loans that are classified as nonperforming and loans that are classified as nonperforming without an allowance as of September 30, 2024 and December 31, 2023. Nonperforming loans generally include loans that have been placed on nonaccrual status.

Table 4.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans

	September 30, 2024									December 31, 2023
(Dollars in millions)	> 90 Days and Accruing			Nonperforming Loans(1)			Nonperforming  Loans Without an Allowance			> 90 Days and Accruing			Nonperforming Loans(1)			Nonperforming  Loans Without an Allowance
Credit Card:
Domestic credit card	$	3,316		N/A			$	0		$	3,367		N/A			$	0
International card businesses	140			$	11		0			132			$	9		0
Total credit card	3,456			11			0			3,499			9			0
Consumer Banking:
Auto	0			685			0			0			712			0
Retail banking	0			27			14			0			46			19
Total consumer banking	0			712			14			0			758			19
Commercial Banking:
Commercial and multifamily real estate	0			630			314			0			425			335
Commercial and industrial	0			718			552			55			336			193
Total commercial banking	0			1,348			866			55			761			528
Total	$	3,456		$	2,071		$	880		$	3,554		$	1,528		$	547
% of Total loans held for investment	1.08		%	0.65		%	0.27		%	1.11		%	0.48		%	0.17		%

__________

(1)We recognized interest income for loans classified as nonperforming of $6 million and $70 million for the three and nine months ended September 30, 2024, respectively, and $11 million and $47 million for the three and nine months ended September 30, 2023, respectively.

Credit Quality Indicator

The table below presents our credit card portfolio by delinquency status as of September 30, 2024 and December 31, 2023.

Table 4.3: Credit Card Delinquency Status

	September 30, 2024						December 31, 2023
(Dollars in millions)	Revolving Loans		Revolving Loans Converted to Term		Total		Revolving Loans		Revolving Loans Converted to Term		Total
Credit Card:
Domestic credit card:
Current	$	142,201	$	432	$	142,633	$	140,521	$	339	$	140,860
30-59 days	1,952		30		1,982		1,940		28		1,968
60-89 days	1,450		19		1,469		1,454		17		1,471
Greater than 90 days	3,289		27		3,316		3,339		28		3,367
Total domestic credit card	148,892		508		149,400		147,254		412		147,666
International card businesses:
Current	6,877		37		6,914		6,521		31		6,552
30-59 days	111		5		116		112		4		116
60-89 days	71		4		75		72		4		76
Greater than 90 days	142		4		146		132		5		137
Total international card businesses	7,201		50		7,251		6,837		44		6,881
Total credit card	$	156,093	$	558	$	156,651	$	154,091	$	456	$	154,547

The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of September 30, 2024 and December 31, 2023. We present our auto loan portfolio by Fair Isaac Corporation (“FICO”) scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming.

Table 4.4: Consumer Banking Portfolio by Vintage Year

	September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Auto—At origination FICO scores:(1)
Greater than 660	$	12,790	$	9,219	$	9,214	$	6,501	$	1,832	$	578	$	40,134	$	0	$	0	$	40,134
621-660	4,316		3,827		3,262		2,291		811		330		14,837		0		0		14,837
620 or below	6,045		5,331		4,071		2,935		1,453		699		20,534		0		0		20,534
Total auto	23,151		18,377		16,547		11,727		4,096		1,607		75,505		0		0		75,505
Retail banking—Delinquency status:
Current	113		78		92		52		54		494		883		342		4		1,229
30-59 days	0		0		0		0		0		2		2		11		0		13
60-89 days	0		0		0		0		0		0		0		2		0		2
Greater than 90 days	0		0		0		0		1		7		8		1		0		9
Total retail banking	113		78		92		52		55		503		893		356		4		1,253
Total consumer banking	$	23,264	$	18,455	$	16,639	$	11,779	$	4,151	$	2,110	$	76,398	$	356	$	4	$	76,758

	December 31, 2023
	Term Loans by Vintage Year
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Auto—At origination FICO scores:(1)
Greater than 660	$	12,219	$	12,593	$	9,505	$	3,124	$	1,213	$	309	$	38,963	$	0	$	0	$	38,963
621-660	4,863		4,432		3,346		1,337		592		192		14,762		0		0		14,762
620 or below	6,647		5,539		4,283		2,349		1,131		401		20,350		0		0		20,350
Total auto	23,729		22,564		17,134		6,810		2,936		902		74,075		0		0		74,075
Retail banking—Delinquency status:
Current	98		157		57		65		117		468		962		363		4		1,329
30-59 days	1		0		1		1		0		1		4		11		0		15
60-89 days	0		0		0		0		0		1		1		2		0		3
Greater than 90 days	0		0		0		0		0		8		8		6		1		15
Total retail banking	99		157		58		66		117		478		975		382		5		1,362
Total consumer banking	$	23,828	$	22,721	$	17,192	$	6,876	$	3,053	$	1,380	$	75,050	$	382	$	5	$	75,437

__________

(1)Amounts 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.

The following table presents our commercial banking portfolio of loans held for investment by internal risk ratings as of September 30, 2024 and December 31, 2023. The internal risk rating status includes all past due loans, both performing and nonperforming.

Table 4.5: Commercial Banking Portfolio by Internal Risk Ratings

	September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	1,262	$	2,300	$	3,643	$	2,265	$	965	$	5,096	$	15,531	$	12,591	$	50	$	28,172
Criticized performing	53		91		1,525		294		128		1,048		3,139		161		97		3,397
Criticized nonperforming	23		0		14		141		83		341		602		28		0		630
Total commercial and multifamily real estate	1,338		2,391		5,182		2,700		1,176		6,485		19,272		12,780		147		32,199
Commercial and industrial
Noncriticized	4,106		6,046		10,197		5,770		2,762		7,001		35,882		14,637		144		50,663
Criticized performing	6		193		781		811		118		367		2,276		978		0		3,254
Criticized nonperforming	62		13		128		17		189		120		529		189		0		718
Total commercial and industrial	4,174		6,252		11,106		6,598		3,069		7,488		38,687		15,804		144		54,635
Total commercial banking	$	5,512	$	8,643	$	16,288	$	9,298	$	4,245	$	13,973	$	57,959	$	28,584	$	291	$	86,834

	December 31, 2023
	Term Loans by Vintage Year
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	3,068	$	4,665	$	2,773	$	1,019	$	2,104	$	3,670	$	17,299	$	12,565	$	25	$	29,889
Criticized performing	148		1,494		706		284		463		904		3,999		133		0		4,132
Criticized nonperforming	65		26		124		0		47		163		425		0		0		425
Total commercial and multifamily real estate	3,281		6,185		3,603		1,303		2,614		4,737		21,723		12,698		25		34,446
Commercial and industrial
Noncriticized	6,909		11,935		6,994		3,566		2,359		5,117		36,880		14,822		167		51,869
Criticized performing	353		706		655		237		348		349		2,648		1,189		0		3,837
Criticized nonperforming	13		53		30		18		123		68		305		31		0		336
Total commercial and industrial	7,275		12,694		7,679		3,821		2,830		5,534		39,833		16,042		167		56,042
Total commercial banking	$	10,556	$	18,879	$	11,282	$	5,124	$	5,444	$	10,271	$	61,556	$	28,740	$	192	$	90,488

__________

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

The table below presents gross charge-offs for loans held for investment by vintage year during the nine months ended September 30, 2024.

Table 5.2: Gross Charge-Offs by Vintage Year

	Nine Months Ended September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Credit Card
Domestic credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		$	7,425	$	84	$	7,509
International card business	N/A		N/A		N/A		N/A		N/A		N/A		N/A		373		10		383
Total credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		7,798		94		7,892
Consumer Banking
Auto	$	70	$	474	$	630	$	457	$	184	$	126	$	1,941	0		0		1,941
Retail banking	1		0		0		0		0		3		4		57		1		62
Total consumer banking	71		474		630		457		184		129		1,945		57		1		2,003
Commercial Banking
Commercial and multifamily real estate	0		0		5		31		0		49		85		0		0		85
Commercial and industrial	0		0		46		5		16		4		71		10		0		81
Total commercial banking	0		0		51		36		16		53		156		10		0		166
Total	$	71	$	474	$	681	$	493	$	200	$	182	$	2,101	$	7,865	$	95	$	10,061

FDM Disclosures

The following tables present the major modification types, amortized cost amounts for each modification type and financial effects for all FDMs undertaken during the three and nine months ended September 30, 2024 and 2023.

Table 4.6: Financial Difficulty Modifications to Borrowers

	Three Months Ended September 30, 2024
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	173		$	60		$	233		—			—			—			—			$	9		$	9		$	242
Term extension	—			—			—			$	10		$	3		$	13		$	286		432			718			731
Principal balance reduction	—			—			—			9			—			9			—			—			—			9
Interest rate reduction and term extension	5			—			5			258			—			258			—			1			1			264
Other(1)	—			—			—			2			—			2			21			31			52			54
Total loans modified	$	178		$	60		$	238		$	279		$	3		$	282		$	307		$	473		$	780		$	1,300
% of total class of receivables	0.12		%	0.83		%	0.15		%	0.37		%	0.22		%	0.37		%	0.96		%	0.87		%	0.90		%	0.41		%

	Nine Months Ended September 30, 2024
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	472		$	113		$	585		—			—			—			—			$	9		$	9		$	594
Term extension	—			—			—			$	17		$	4		$	21		$	513		695			1,208			1,229
Principal balance reduction	—			—			—			19			—			19			—			15			15			34
Interest rate reduction and term extension	8			—			8			573			—			573			—			7			7			588
Other(1)	—			—			—			3			1			4			159			117			276			280
Total loans modified	$	480		$	113		$	593		$	612		$	5		$	617		$	672		$	843		$	1,515		$	2,725
% of total class of receivables	0.32		%	1.56		%	0.38		%	0.81		%	0.42		%	0.80		%	2.09		%	1.54		%	1.74		%	0.85		%

	Three Months Ended September 30, 2023
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	200		$	42		$	242		—			—			—			—			—			—			$	242
Term extension	—			—			—			$	14		$	2		$	16		$	128		$	147		$	275		291
Principal balance reduction	—			—			—			8			—			8			—			—			—			8
Interest rate reduction and term extension	7			—			7			248			—			248			—			26			26			281
Other(1)	—			—			—			2			7			9			—			56			56			65
Total loans modified	$	207		$	42		$	249		$	272		$	9		$	281		$	128		$	229		$	357		$	887
% of total class of receivables	0.15		%	0.65		%	0.17		%	0.36		%	0.62		%	0.36		%	0.36		%	0.41		%	0.39		%	0.28		%

	Nine Months Ended September 30, 2023
	Credit Card									Consumer Banking									Commercial Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial and Multifamily Real Estate			Commercial and Industrial			Total Commercial Banking			Total
Interest rate reduction	$	437		$	76		$	513		—			—			—			—			—			—			$	513
Term extension	—			—			—			$	76		$	3		$	79		$	327		$	347		$	674		753
Principal balance reduction	—			—			—			17			—			17			—			—			—			17
Principal balance reduction and term extension	—			—			—			—			—			—			—			15			15			15
Interest rate reduction and term extension	10			—			10			504			—			504			—			26			26			540
Other(1)	—			—			—			3			7			10			54			151			205			215
Total loans modified	$	447		$	76		$	523		$	600		$	10		$	610		$	381		$	539		$	920		$	2,053
% of total class of receivables	0.32		%	1.17		%	0.36		%	0.79		%	0.75		%	0.79		%	1.07		%	0.97		%	1.01		%	0.65		%

__________

(1)Primarily consists of modifications or combinations of modifications not categorized above, such as increases in committed exposure, forbearances and other types of modifications in Commercial Banking.

Table 4.7: Financial Effects of Financial Difficulty Modifications to Borrowers

	Three Months Ended September 30, 2024
	Credit Card		Consumer Banking		Commercial Banking
(Dollars in millions)	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	20.49%	27.01%	8.83%	—%	—%	2.14%
Payment delay duration (in months)	12	—	6	25	18	18
Principal balance reduction	—	—	—	—	—	—

	Nine Months Ended September 30, 2024
	Credit Card		Consumer Banking		Commercial Banking
	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	20.19%	26.76%	8.78%	3.48%	0.79%	1.90%
Payment delay duration (in months)	12	—	6	4	11	16
Principal balance reduction	—	—	—	—	—	$15

	Three Months Ended September 30, 2023
	Credit Card		Consumer Banking		Commercial Banking
	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	19.40%	27.41%	8.67%	—%	—%	0.25%
Payment delay duration (in months)	12	—	6	8	11	17
Principal balance reduction	—	—	—	—	—	—

	Nine Months Ended September 30, 2023
	Credit Card		Consumer Banking		Commercial Banking
	Domestic Card	International Card Businesses	Auto	Retail Banking	Commercial and Multifamily Real Estate	Commercial and Industrial
Weighted-average interest rate reduction	19.19%	27.08%	8.74%	2.00%	—%	0.25%
Payment delay duration (in months)	12	—	6	13	15	9
Principal balance reduction	—	—	$1	—	$20	$3

For the interim reporting period ended September 30, 2024, the delinquency status as of this date is shown in the table below for FDMs entered into over the preceding twelve month period. For the interim reporting period ended September 30, 2023, the delinquency status as of this date is shown in the table below for FDMs entered into during the first nine months of 2023.

Table 4.8 Delinquency Status of Financial Difficulty Modifications to Borrowers(1)

	September 30, 2024
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	423	$	60	$	45	$	88	$	193	$	616
International card businesses	68		12		11		37		60		128
Total credit card	491		72		56		125		253		744
Consumer Banking:
Auto	560		112		71		28		211		771
Retail banking	10		0		0		0		0		10
Total consumer banking	570		112		71		28		211		781
Commercial Banking:
Commercial and multifamily real estate	646		0		0		28		28		674
Commercial and industrial	768		74		4		65		143		911
Total commercial banking	1,414		74		4		93		171		1,585
Total	$	2,475	$	258	$	131	$	246	$	635	$	3,110

	September 30, 2023
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	283	$	65	$	40	$	59	$	164	$	447
International card businesses	35		8		8		25		41		76
Total credit card	318		73		48		84		205		523
Consumer Banking:
Auto	457		79		46		18		143		600
Retail banking	10		0		0		0		0		10
Total consumer banking	467		79		46		18		143		610
Commercial Banking:
Commercial and multifamily real estate	318		0		0		63		63		381
Commercial and industrial	417		4		0		118		122		539
Total commercial banking	735		4		0		181		185		920
Total	$	1,520	$	156	$	94	$	283	$	533	$	2,053

__________

(1)Commitments to lend additional funds on FDMs totaled $263 million and $75 million as of September 30, 2024 and 2023, respectively.

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods

The following table presents FDMs that entered subsequent default for the three and nine months ended September 30, 2024 and 2023.

Table 4.9 Subsequent Defaults of Financial Difficulty Modifications to Borrowers

	Three Months Ended September 30, 2024
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Other Modifications		Total Loans
Credit Card:
Domestic credit card	$	52	$	0	$	0	$	0	$	52
International card businesses	21		0		0		0		21
Total credit card	73		0		0		0		73
Consumer Banking:
Auto	0		1		110		0		111
Retail banking	0		0		0		0		0
Total consumer banking	0		1		110		0		111
Commercial Banking:
Commercial and multifamily real estate	0		103		0		28		131
Commercial and industrial	0		0		0		0		0
Total commercial banking	0		103		0		28		131
Total	$	73	$	104	$	110	$	28	$	315

	Nine Months Ended September 30, 2024
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Other Modifications		Total Loans
Credit Card:
Domestic credit card	$	179	$	0	$	2	$	0	$	181
International card businesses	56		0		0		0		56
Total credit card	235		0		2		0		237
Consumer Banking:
Auto	0		6		329		0		335
Retail banking	0		1		0		0		1
Total consumer banking	0		7		329		0		336
Commercial Banking:
Commercial and multifamily real estate	0		103		0		28		131
Commercial and industrial	0		125		0		255		380
Total commercial banking	0		228		0		283		511
Total	$	235	$	235	$	331	$	283	$	1,084

	Three Months Ended September 30, 2023
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total Loans
Credit Card:
Domestic credit card	$	17	$	0	$	0	$	17
International card businesses	6		0		0		6
Total credit card	23		0		0		23
Consumer Banking:
Auto	0		7		77		84
Total consumer banking	0		7		77		84
Commercial Banking:
Commercial and multifamily real estate	0		46		0		46
Commercial and industrial	0		51		0		51
Total commercial banking	0		97		0		97
Total	$	23	$	104	$	77	$	204

	Nine Months Ended September 30, 2023
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total Loans
Credit Card:
Domestic credit card	$	39	$	0	$	0	$	39
International card businesses	9		0		0		9
Total credit card	48		0		0		48
Consumer Banking:
Auto	0		9		129		138
Total consumer banking	0		9		129		138
Commercial Banking:
Commercial and multifamily real estate	0		46		0		46
Commercial and industrial	0		51		0		51
Total commercial banking	0		97		0		97
Total	$	48	$	106	$	129	$	283

XML

Allowance for Credit Losses and Reserve for Unfunded Lending Commitments (Tables)

9 Months Ended

Sep. 30, 2024

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Allowance for Credit Losses on Financing Receivables

The table below summarizes changes in the allowance for credit losses and reserve for unfunded lending commitments by portfolio segment for the three and nine months ended September 30, 2024 and 2023. Our allowance for credit losses increased by $1.2 billion to $16.5 billion as of September 30, 2024 from December 31, 2023.

Table 5.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

	Three Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of June 30, 2024	$	13,040	$	2,065	$	1,544	$	16,649
Charge-offs	(2,632)		(707)		(88)		(3,427)
Recoveries(1)	478		306		39		823
Net charge-offs	(2,154)		(401)		(49)		(2,604)
Provision for credit losses	2,084		351		35		2,470
Allowance release for credit losses	(70)		(50)		(14)		(134)
Other changes(2)	19		0		0		19
Balance as of September 30, 2024	12,989		2,015		1,530		16,534
Reserve for unfunded lending commitments:
Balance as of June 30, 2024	0		0		129		129
Provision for losses on unfunded lending commitments	0		0		13		13
Balance as of September 30, 2024	0		0		142		142
Combined allowance and reserve as of September 30, 2024	$	12,989	$	2,015	$	1,672	$	16,676

	Nine Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2023	$	11,709	$	2,042	$	1,545	$	15,296
Charge-offs	(7,892)		(2,003)		(166)		(10,061)
Recoveries(1)	1,273		869		55		2,197
Net charge-offs	(6,619)		(1,134)		(111)		(7,864)
Provision for credit losses	7,888		1,107		96		9,091
Allowance build (release) for credit losses(3)	1,269		(27)		(15)		1,227
Other changes(2)	11		0		0		11
Balance as of September 30, 2024	12,989		2,015		1,530		16,534
Reserve for unfunded lending commitments:
Balance as of December 31, 2023	0		0		158		158
Provision (benefit) for losses on unfunded lending commitments	0		0		(16)		(16)
Balance as of September 30, 2024	0		0		142		142
Combined allowance and reserve as of September 30, 2024	$	12,989	$	2,015	$	1,672	$	16,676

	Three Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of June 30, 2023	$	10,976	$	2,185	$	1,485	$	14,646
Charge-offs	(1,925)		(596)		(60)		(2,581)
Recoveries(1)	333		247		2		582
Net charge-offs	(1,592)		(349)		(58)		(1,999)
Provision for credit losses	1,953		213		155		2,321
Allowance build (release) for credit losses	361		(136)		97		322
Other changes(2)	(13)		0		0		(13)
Balance as of September 30, 2023	11,324		2,049		1,582		14,955
Reserve for unfunded lending commitments:
Balance as of June 30, 2023	0		0		197		197
Provision (benefit) for losses on unfunded lending commitments	0		0		(39)		(39)
Balance as of September 30, 2023	0		0		158		158
Combined allowance and reserve as of September 30, 2023	$	11,324	$	2,049	$	1,740	$	15,113

	Nine Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2022	$	9,545	$	2,237	$	1,458	$	13,240
Cumulative effects of accounting standards adoption(4)	(63)		0		0		(63)
Balance as of January 1, 2023	9,482		2,237		1,458		13,177
Charge-offs	(5,481)		(1,653)		(462)		(7,596)
Recoveries(1)	992		718		5		1,715
Net charge-offs	(4,489)		(935)		(457)		(5,881)
Provision for credit losses	6,298		747		581		7,626
Allowance build (release) for credit losses	1,809		(188)		124		1,745
Other changes(2)	33		0		0		33
Balance as of September 30, 2023	11,324		2,049		1,582		14,955
Reserve for unfunded lending commitments:
Balance as of December 31, 2022	0		0		218		218
Provision (benefit) for losses on unfunded lending commitments	0		0		(60)		(60)
Balance as of September 30, 2023	0		0		158		158
Combined allowance and reserve as of September 30, 2023	$	11,324	$	2,049	$	1,740	$	15,113

________

(1)The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications, repossession of collateral, the periodic sale of charged off loans as well as additional strategies, such as litigation.

(2)Primarily represents foreign currency translation adjustments in the three and nine months ended September 30, 2024 as well as the three months ended September 30, 2023. Primarily represents the initial allowance for purchased credit-deteriorated (“PCD”) loans in the nine months ended September 30, 2023. The initial allowance of PCD loans was $0 million and $32 million for the nine months ended September 30, 2024 and 2023, respectively.

(3)The termination of our Walmart program agreement, effective May 21, 2024, (“Walmart Program Termination”) resulted in an allowance for credit losses build in Domestic Card of $826 million in the second quarter of 2024.

(4)Impact from the adoption of ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures as of January 1, 2023.

Credit Quality Indicator

The table below presents our credit card portfolio by delinquency status as of September 30, 2024 and December 31, 2023.

Table 4.3: Credit Card Delinquency Status

	September 30, 2024						December 31, 2023
(Dollars in millions)	Revolving Loans		Revolving Loans Converted to Term		Total		Revolving Loans		Revolving Loans Converted to Term		Total
Credit Card:
Domestic credit card:
Current	$	142,201	$	432	$	142,633	$	140,521	$	339	$	140,860
30-59 days	1,952		30		1,982		1,940		28		1,968
60-89 days	1,450		19		1,469		1,454		17		1,471
Greater than 90 days	3,289		27		3,316		3,339		28		3,367
Total domestic credit card	148,892		508		149,400		147,254		412		147,666
International card businesses:
Current	6,877		37		6,914		6,521		31		6,552
30-59 days	111		5		116		112		4		116
60-89 days	71		4		75		72		4		76
Greater than 90 days	142		4		146		132		5		137
Total international card businesses	7,201		50		7,251		6,837		44		6,881
Total credit card	$	156,093	$	558	$	156,651	$	154,091	$	456	$	154,547

The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of September 30, 2024 and December 31, 2023. We present our auto loan portfolio by Fair Isaac Corporation (“FICO”) scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming.

Table 4.4: Consumer Banking Portfolio by Vintage Year

	September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Auto—At origination FICO scores:(1)
Greater than 660	$	12,790	$	9,219	$	9,214	$	6,501	$	1,832	$	578	$	40,134	$	0	$	0	$	40,134
621-660	4,316		3,827		3,262		2,291		811		330		14,837		0		0		14,837
620 or below	6,045		5,331		4,071		2,935		1,453		699		20,534		0		0		20,534
Total auto	23,151		18,377		16,547		11,727		4,096		1,607		75,505		0		0		75,505
Retail banking—Delinquency status:
Current	113		78		92		52		54		494		883		342		4		1,229
30-59 days	0		0		0		0		0		2		2		11		0		13
60-89 days	0		0		0		0		0		0		0		2		0		2
Greater than 90 days	0		0		0		0		1		7		8		1		0		9
Total retail banking	113		78		92		52		55		503		893		356		4		1,253
Total consumer banking	$	23,264	$	18,455	$	16,639	$	11,779	$	4,151	$	2,110	$	76,398	$	356	$	4	$	76,758

	December 31, 2023
	Term Loans by Vintage Year
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Auto—At origination FICO scores:(1)
Greater than 660	$	12,219	$	12,593	$	9,505	$	3,124	$	1,213	$	309	$	38,963	$	0	$	0	$	38,963
621-660	4,863		4,432		3,346		1,337		592		192		14,762		0		0		14,762
620 or below	6,647		5,539		4,283		2,349		1,131		401		20,350		0		0		20,350
Total auto	23,729		22,564		17,134		6,810		2,936		902		74,075		0		0		74,075
Retail banking—Delinquency status:
Current	98		157		57		65		117		468		962		363		4		1,329
30-59 days	1		0		1		1		0		1		4		11		0		15
60-89 days	0		0		0		0		0		1		1		2		0		3
Greater than 90 days	0		0		0		0		0		8		8		6		1		15
Total retail banking	99		157		58		66		117		478		975		382		5		1,362
Total consumer banking	$	23,828	$	22,721	$	17,192	$	6,876	$	3,053	$	1,380	$	75,050	$	382	$	5	$	75,437

__________

(1)Amounts 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.

The following table presents our commercial banking portfolio of loans held for investment by internal risk ratings as of September 30, 2024 and December 31, 2023. The internal risk rating status includes all past due loans, both performing and nonperforming.

Table 4.5: Commercial Banking Portfolio by Internal Risk Ratings

	September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	1,262	$	2,300	$	3,643	$	2,265	$	965	$	5,096	$	15,531	$	12,591	$	50	$	28,172
Criticized performing	53		91		1,525		294		128		1,048		3,139		161		97		3,397
Criticized nonperforming	23		0		14		141		83		341		602		28		0		630
Total commercial and multifamily real estate	1,338		2,391		5,182		2,700		1,176		6,485		19,272		12,780		147		32,199
Commercial and industrial
Noncriticized	4,106		6,046		10,197		5,770		2,762		7,001		35,882		14,637		144		50,663
Criticized performing	6		193		781		811		118		367		2,276		978		0		3,254
Criticized nonperforming	62		13		128		17		189		120		529		189		0		718
Total commercial and industrial	4,174		6,252		11,106		6,598		3,069		7,488		38,687		15,804		144		54,635
Total commercial banking	$	5,512	$	8,643	$	16,288	$	9,298	$	4,245	$	13,973	$	57,959	$	28,584	$	291	$	86,834

	December 31, 2023
	Term Loans by Vintage Year
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	3,068	$	4,665	$	2,773	$	1,019	$	2,104	$	3,670	$	17,299	$	12,565	$	25	$	29,889
Criticized performing	148		1,494		706		284		463		904		3,999		133		0		4,132
Criticized nonperforming	65		26		124		0		47		163		425		0		0		425
Total commercial and multifamily real estate	3,281		6,185		3,603		1,303		2,614		4,737		21,723		12,698		25		34,446
Commercial and industrial
Noncriticized	6,909		11,935		6,994		3,566		2,359		5,117		36,880		14,822		167		51,869
Criticized performing	353		706		655		237		348		349		2,648		1,189		0		3,837
Criticized nonperforming	13		53		30		18		123		68		305		31		0		336
Total commercial and industrial	7,275		12,694		7,679		3,821		2,830		5,534		39,833		16,042		167		56,042
Total commercial banking	$	10,556	$	18,879	$	11,282	$	5,124	$	5,444	$	10,271	$	61,556	$	28,740	$	192	$	90,488

__________

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

The table below presents gross charge-offs for loans held for investment by vintage year during the nine months ended September 30, 2024.

Table 5.2: Gross Charge-Offs by Vintage Year

	Nine Months Ended September 30, 2024
	Term Loans by Vintage Year
(Dollars in millions)	2024		2023		2022		2021		2020		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Credit Card
Domestic credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		$	7,425	$	84	$	7,509
International card business	N/A		N/A		N/A		N/A		N/A		N/A		N/A		373		10		383
Total credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		7,798		94		7,892
Consumer Banking
Auto	$	70	$	474	$	630	$	457	$	184	$	126	$	1,941	0		0		1,941
Retail banking	1		0		0		0		0		3		4		57		1		62
Total consumer banking	71		474		630		457		184		129		1,945		57		1		2,003
Commercial Banking
Commercial and multifamily real estate	0		0		5		31		0		49		85		0		0		85
Commercial and industrial	0		0		46		5		16		4		71		10		0		81
Total commercial banking	0		0		51		36		16		53		156		10		0		166
Total	$	71	$	474	$	681	$	493	$	200	$	182	$	2,101	$	7,865	$	95	$	10,061

Schedule of Loss Sharing Arrangement Impact

The table below summarizes the changes in the estimated reimbursements from these partners for the three and nine months ended September 30, 2024 and 2023.

Table 5.3: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts

	Three Months Ended September 30,
(Dollars in millions)	2024		2023
Estimated reimbursements from partners, beginning of period	$	1,210	$	1,908
Amounts due from partners for charged off loans	(157)		(249)
Change in estimated partner reimbursements that decreased provision for credit losses	102		319
Estimated reimbursements from partners, end of period	$	1,155	$	1,978

	Nine Months Ended September 30,
(Dollars in millions)	2024		2023
Estimated reimbursements from partners, beginning of period	$	2,014	$	1,558
Amounts due from partners for charged off loans	(734)		(681)
Change in estimated partner reimbursements that (increased) decreased provision for credit losses	(125)		1,101
Estimated reimbursements from partners, end of period	$	1,155	$	1,978

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Variable Interest Entities and Securitizations (Tables)

9 Months Ended

Sep. 30, 2024

Variable Interest Entities and Securitization [Abstract]

Carrying Amount of Assets and Liabilities of Variable Interest Entities

The tables below present a summary of VIEs in which we had continuing involvement or held a significant variable interest, aggregated based on VIEs with similar characteristics as of September 30, 2024 and December 31, 2023. We separately present information for consolidated and unconsolidated VIEs.

Table 6.1: Carrying Amount of Consolidated and Unconsolidated VIEs

	September 30, 2024
	Consolidated				Unconsolidated
(Dollars in millions)	Carrying Amount of Assets		Carrying Amount of Liabilities		Carrying Amount of Assets		Carrying Amount of Liabilities		Maximum Exposure to Loss
Securitization-Related VIEs:(1)
Credit card loan securitizations(2)	$	24,000	$	13,495	$	0	$	0	$	0
Auto loan securitizations	3,473		2,788		0		0		0
Total securitization-related VIEs	27,473		16,283		0		0		0
Other VIEs:(3)
Affordable housing entities	354		75		5,469		1,890		5,469
Entities that provide capital to low-income and rural communities	2,639		10		0		0		0
Other(4)	0		0		385		8		385
Total other VIEs	2,993		85		5,854		1,898		5,854
Total VIEs	$	30,466	$	16,368	$	5,854	$	1,898	$	5,854

	December 31, 2023
	Consolidated				Unconsolidated
(Dollars in millions)	Carrying Amount of Assets		Carrying Amount of Liabilities		Carrying Amount of Assets		Carrying Amount of Liabilities		Maximum Exposure to Loss
Securitization-Related VIEs:(1)
Credit card loan securitizations(2)	$	25,474	$	14,692	$	0	$	0	$	0
Auto loan securitizations	5,019		4,021		0		0		0
Total securitization-related VIEs	30,493		18,713		0		0		0
Other VIEs:(3)
Affordable housing entities	297		23		5,726		2,085		5,726
Entities that provide capital to low-income and rural communities	2,498		10		0		0		0
Other(4)	0		0		449		0		449
Total other VIEs	2,795		33		6,175		2,085		6,175
Total VIEs	$	33,288	$	18,746	$	6,175	$	2,085	$	6,175

__________

(1)Excludes insignificant VIEs from previously exited businesses.

(2)Represents the carrying amount of assets and liabilities of the VIE, which includes the seller’s interest and repurchased notes held by other related parties.

(3)In certain investment structures, we consolidate a VIE which holds as its primary asset an investment in an unconsolidated VIE. In these instances, we disclose the carrying amount of assets and liabilities on our consolidated balance sheets as unconsolidated VIEs to avoid duplicating our exposure, as the unconsolidated VIEs are generally the operating entities generating the exposure. The carrying amount of assets and liabilities included in the unconsolidated VIE columns above related to these investment structures were $2.6 billion of assets and $999 million of liabilities as of September 30, 2024, and $2.6 billion of assets and $989 million of liabilities as of December 31, 2023.

(4)Primarily consists of variable interests in companies that promote renewable energy sources and other equity method investments.

External Debt and Receivable Balances of Securitization Programs

The table below presents our continuing involvement in certain securitization-related VIEs as of September 30, 2024 and December 31, 2023.

Table 6.2: Continuing Involvement in Securitization-Related VIEs

(Dollars in millions)	Credit Card		Auto
September 30, 2024:
Securities held by third-party investors	$	13,098	$	2,783
Receivables in the trusts	24,867		3,315
Cash balance of spread or reserve accounts	0		19
Retained interests	Yes		Yes
Servicing retained	Yes		Yes
December 31, 2023:
Securities held by third-party investors	$	14,029	$	4,014
Receivables in the trusts	26,404		4,839
Cash balance of spread or reserve accounts	0		19
Retained interests	Yes		Yes
Servicing retained	Yes		Yes

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Components of Goodwill, Intangible Assets and MSRs

The table below presents our goodwill, other intangible assets and MSRs as of September 30, 2024 and December 31, 2023. Goodwill is presented separately, while other intangible assets and MSRs are included in other assets on our consolidated balance sheets.

Table 7.1: Components of Goodwill, Other Intangible Assets and MSRs

	September 30, 2024
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount
Goodwill	$	15,083	N/A		$	15,083
Other intangible assets:
Purchased credit card relationship (“PCCR”) intangibles	369		$	(147)	222
Other(1)	135		(104)		31
Total other intangible assets	504		(251)		253
Total goodwill and other intangible assets	$	15,587	$	(251)	$	15,336
Commercial MSRs(2)	$	658	$	(301)	$	357
	December 31, 2023
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount
Goodwill	$	15,065	N/A		$	15,065
Other intangible assets:
Purchased credit card relationship (“PCCR”) intangibles	369		$	(96)	273
Other(1)	171		(134)		37
Total other intangible assets	540		(230)		310
Total goodwill and other intangible assets	$	15,605	$	(230)	$	15,375
Commercial MSRs(2)	$	653	$	(263)	$	390

__________

(1)Primarily consists of intangibles for sponsorship, customer and merchant relationships, domain names and licenses.

(2)Commercial MSRs are accounted for under the amortization method on our consolidated balance sheets.

Goodwill by Business Segments

The following table presents changes in the carrying amount of goodwill by each of our business segments as of September 30, 2024 and December 31, 2023.

Table 7.2: Goodwill by Business Segments

(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Balance as of December 31, 2023	$	5,366	$	4,645	$	5,054	$	15,065
Other adjustments(1)	18		0		0		18
Balance as of September 30, 2024	$	5,384	$	4,645	$	5,054	$	15,083

__________

(1)Primarily represents foreign currency translation adjustments.

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Deposits and Borrowings (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Components of Deposits, Short-Term Borrowings and Long-Term Debt

The following tables summarize the components of our deposits, short-term borrowings and long-term debt as of September 30, 2024 and December 31, 2023. The carrying value presented below for these borrowings includes any unamortized debt premiums and discounts, net of debt issuance costs and fair value hedge accounting adjustments.

Table 8.1: Components of Deposits, Short-Term Borrowings and Long-Term Debt

(Dollars in millions)	September 30, 2024		December 31, 2023
Deposits:
Non-interest-bearing deposits	$	26,378	$	28,024
Interest-bearing deposits(1)	327,253		320,389
Total deposits	$	353,631	$	348,413
Short-term borrowings:
Federal funds purchased and securities loaned or sold under agreements to repurchase	$	520	$	538
Total short-term borrowings	$	520	$	538

	September 30, 2024					December 31, 2023
(Dollars in millions)	Maturity Dates	Stated Interest Rates	Weighted-Average Interest Rate	Carrying Value		Carrying Value
Long-term debt:
Securitized debt obligations	2024-2028	0.77% - 6.11%	3.13%	$	15,881	$	18,043
Senior and subordinated notes:
Fixed unsecured senior debt(2)	2024-2035	1.65 - 7.62	4.76	29,102		27,168
Floating unsecured senior debt	—	—	—	0		349
Total unsecured senior debt			4.76	29,102		27,517
Fixed unsecured subordinated debt	2025-2032	2.36 - 4.20	3.57	3,809		3,731
Total senior and subordinated notes				32,911		31,248
Other long-term borrowings	2024-2031	1.20 - 9.91	6.59	24		27
Total long-term debt				$	48,816	$	49,318
Total short-term borrowings and long-term debt				$	49,336	$	49,856

__________

(1)Some customers have time deposits in excess of the federal deposit insurance limit, making a portion of the deposit uninsured. As of September 30, 2024, the total time deposit amount with some portion in excess of the insured amount was $14.7 billion and the portion of total time deposits estimated to be uninsured was $9.7 billion. As of December 31, 2023, the total time deposit amount with some portion in excess of the insured amount was $15.8 billion and the portion of total time deposits estimated to be uninsured was $9.0 billion.

(2)Includes $506 million and $1.3 billion of Euro (“EUR”) denominated unsecured notes as of September 30, 2024 and December 31, 2023, respectively.

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Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets and Liabilities at Fair Value

The following table summarizes the notional amounts and fair values of our derivative instruments as of September 30, 2024 and December 31, 2023, which are segregated by derivatives that are designated as accounting hedges and those that are not, and are further segregated by type of contract within those two categories. The total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated cash collateral received or pledged. Derivative assets and liabilities are included in other assets and other liabilities, respectively, on our consolidated balance sheets, and their related gains or losses are included in operating activities as changes in other assets and other liabilities in the consolidated statements of cash flows.

Table 9.1: Derivative Assets and Liabilities at Fair Value

	September 30, 2024						December 31, 2023
	Notional or Contractual Amount		Derivative(1)				Notional or Contractual Amount		Derivative(1)
(Dollars in millions)			Assets		Liabilities				Assets		Liabilities
Derivatives designated as accounting hedges:
Interest rate contracts:
Fair value hedges	$	64,284	$	8	$	82	$	68,987	$	18	$	26
Cash flow hedges	93,050		307		80		70,350		216		23
Total interest rate contracts	157,334		315		162		139,337		234		49
Foreign exchange contracts:
Fair value hedges	557		0		66		1,380		0		113
Cash flow hedges	2,645		0		59		2,488		0		66
Net investment hedges	5,100		2		174		4,870		1		89
Total foreign exchange contracts	8,302		2		299		8,738		1		268
Total derivatives designated as accounting hedges	165,636		317		461		148,075		235		317
Derivatives not designated as accounting hedges:
Customer accommodation:
Interest rate contracts	103,279		844		929		103,489		1,188		1,382
Commodity contracts	35,647		1,177		1,182		33,495		1,161		1,147
Foreign exchange and other contracts	5,580		31		39		5,153		50		47
Total customer accommodation	144,506		2,052		2,150		142,137		2,399		2,576
Other interest rate exposures(2)	921		19		14		872		21		31
Other contracts	3,011		20		32		2,955		20		8
Total derivatives not designated as accounting hedges	148,438		2,091		2,196		145,964		2,440		2,615
Total derivatives	$	314,074	$	2,408	$	2,657	$	294,039	$	2,675	$	2,932
Less: netting adjustment(3)			(725)		(622)				(1,005)		(597)
Total derivative assets/liabilities			$	1,683	$	2,035			$	1,670	$	2,335

__________

(1)Does not reflect $3 million and $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of September 30, 2024 and December 31, 2023, respectively. This net valuation allowance is included as part of other assets and other liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income.

(2)Other interest rate exposures include commercial mortgage-related derivatives and interest rate swaps.

(3)Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty.

Hedged Item in Fair Value Hedging Relationship

The following table summarizes the carrying value of our hedged assets and liabilities in fair value hedges and the associated cumulative basis adjustments included in those carrying values, excluding basis adjustments related to foreign currency risk, as of September 30, 2024 and December 31, 2023.

Table 9.2: Hedged Items in Fair Value Hedging Relationships

	September 30, 2024						December 31, 2023
	Carrying Amount Assets/(Liabilities)		Cumulative Amount of Basis Adjustments Included in the Carrying Amount				Carrying Amount Assets/(Liabilities)		Cumulative Amount of Basis Adjustments Included in the Carrying Amount
(Dollars in millions)			Total Assets/(Liabilities)		Discontinued-Hedging Relationships				Total Assets/(Liabilities)		Discontinued-Hedging Relationships
Line item on our consolidated balance sheets in which the hedged item is included:
Investment securities available for sale(1)(2)	$	6,191	$	78	$	87	$	6,108	$	(8)	$	126
Interest-bearing deposits	(11,292)		64		0		(17,374)		277		0
Securitized debt obligations	(13,042)		242		0		(13,375)		503		0
Senior and subordinated notes	(31,410)		385		(258)		(30,899)		971		(372)

__________

(1)These amounts include the amortized cost basis of our investment securities designated in hedging relationships for which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. The amortized cost basis of this portfolio was $1.4 billion and $2.2 billion as of September 30, 2024 and December 31, 2023, respectively. The amount of the designated hedged items was $1.0 billion and $1.5 billion as of September 30, 2024 and December 31, 2023, respectively. The cumulative basis adjustments associated with these hedges was $32 million and $33 million as of September 30, 2024 and December 31, 2023, respectively.

(2)Carrying value represents amortized cost.

Offsetting Assets

The following table presents the gross and net fair values of our derivative assets, derivative liabilities, resale and repurchase agreements and the related offsetting amounts permitted under U.S. GAAP as of September 30, 2024 and December 31, 2023. The table also includes cash and non-cash collateral received or pledged in accordance with such arrangements. The amount of collateral presented, however, is limited to the amount of the related net derivative fair values or outstanding balances; therefore, instances of over-collateralization are excluded.

Table 9.3: Offsetting of Financial Assets and Financial Liabilities

	Gross Amounts		Gross Amounts Offset in the Balance Sheet				Net Amounts as Recognized		Securities Collateral Held Under Master Netting Agreements		Net Exposure
(Dollars in millions)			Financial Instruments		Cash Collateral Received
As of September 30, 2024
Derivative assets(1)	$	2,408	$	(474)	$	(251)	$	1,683	$	(11)	$	1,672
As of December 31, 2023
Derivative assets(1)	2,675		(433)		(572)		1,670		(22)		1,648

	Gross Amounts		Gross Amounts Offset in the Balance Sheet				Net Amounts as Recognized		Securities Collateral Pledged Under Master Netting Agreements		Net Exposure
(Dollars in millions)			Financial Instruments		Cash Collateral Pledged
As of September 30, 2024
Derivative liabilities(1)	$	2,657	$	(474)	$	(148)	$	2,035	$	(27)	$	2,008
Repurchase agreements(2)	520		0		0		520		(520)		0
As of December 31, 2023
Derivative liabilities(1)	2,932		(433)		(164)		2,335		(13)		2,322
Repurchase agreements(2)	538		0		0		538		(538)		0

__________

(1)We received cash collateral from derivative counterparties totaling $428 million and $858 million as of September 30, 2024 and December 31, 2023, respectively. We also received securities from derivative counterparties with a fair value of approximately $11 million and $16 million as of September 30, 2024 and December 31, 2023, respectively, which we have the ability to re-pledge. We posted $1.7 billion of cash collateral as of both September 30, 2024 and December 31, 2023.

(2)Under our customer repurchase agreements, which mature the next business day, we pledged collateral with a fair value of $531 million and $549 million as of September 30, 2024 and December 31, 2023, respectively, primarily consisting of agency RMBS securities.

Offsetting Liabilities

The following table presents the gross and net fair values of our derivative assets, derivative liabilities, resale and repurchase agreements and the related offsetting amounts permitted under U.S. GAAP as of September 30, 2024 and December 31, 2023. The table also includes cash and non-cash collateral received or pledged in accordance with such arrangements. The amount of collateral presented, however, is limited to the amount of the related net derivative fair values or outstanding balances; therefore, instances of over-collateralization are excluded.

Table 9.3: Offsetting of Financial Assets and Financial Liabilities

	Gross Amounts		Gross Amounts Offset in the Balance Sheet				Net Amounts as Recognized		Securities Collateral Held Under Master Netting Agreements		Net Exposure
(Dollars in millions)			Financial Instruments		Cash Collateral Received
As of September 30, 2024
Derivative assets(1)	$	2,408	$	(474)	$	(251)	$	1,683	$	(11)	$	1,672
As of December 31, 2023
Derivative assets(1)	2,675		(433)		(572)		1,670		(22)		1,648

	Gross Amounts		Gross Amounts Offset in the Balance Sheet				Net Amounts as Recognized		Securities Collateral Pledged Under Master Netting Agreements		Net Exposure
(Dollars in millions)			Financial Instruments		Cash Collateral Pledged
As of September 30, 2024
Derivative liabilities(1)	$	2,657	$	(474)	$	(148)	$	2,035	$	(27)	$	2,008
Repurchase agreements(2)	520		0		0		520		(520)		0
As of December 31, 2023
Derivative liabilities(1)	2,932		(433)		(164)		2,335		(13)		2,322
Repurchase agreements(2)	538		0		0		538		(538)		0

__________

(1)We received cash collateral from derivative counterparties totaling $428 million and $858 million as of September 30, 2024 and December 31, 2023, respectively. We also received securities from derivative counterparties with a fair value of approximately $11 million and $16 million as of September 30, 2024 and December 31, 2023, respectively, which we have the ability to re-pledge. We posted $1.7 billion of cash collateral as of both September 30, 2024 and December 31, 2023.

(2)Under our customer repurchase agreements, which mature the next business day, we pledged collateral with a fair value of $531 million and $549 million as of September 30, 2024 and December 31, 2023, respectively, primarily consisting of agency RMBS securities.

Effects of Fair Value and Cash Flow Hedge Accounting

The net gains (losses) recognized in our consolidated statements of income related to derivatives in fair value and cash flow hedging relationships are presented below for the three and nine months ended September 30, 2024 and 2023.

Table 9.4: Effects of Fair Value and Cash Flow Hedge Accounting

	Three Months Ended September 30, 2024
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	733	$	10,547	$	580	$	(2,945)	$	(234)	$	(596)	$	244
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	39	$	0	$	0	$	(73)	$	(102)	$	(248)	$	0
Gains (losses) recognized on derivatives	(144)		0		0		247		210		1,010		21
Gains (losses) recognized on hedged items(1)	128		0		0		(246)		(210)		(973)		(21)
Excluded component of fair value hedges(2)	0		0		0		0		0		0		0
Net income (expense) recognized on fair value hedges	$	23	$	0	$	0	$	(72)	$	(102)	$	(211)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income	$	0	$	(314)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		2		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(314)	$	2	$	0	$	0	$	0	$	1

	Nine Months Ended September 30, 2024
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	2,120	$	30,460	$	1,737	$	(8,631)	$	(753)	$	(1,793)	$	803
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	125	$	0	$	0	$	(277)	$	(339)	$	(771)	$	0
Gains (losses) recognized on derivatives	(137)		0		0		213		261		742		(18)
Gains (losses) recognized on hedged items(1)	86		0		0		(213)		(261)		(627)		18
Excluded component of fair value hedges(2)	0		0		0		0		0		7		0
Net income (expense) recognized on fair value hedges	$	74	$	0	$	0	$	(277)	$	(339)	$	(649)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income	$	0	$	(936)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		7		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(936)	$	7	$	0	$	0	$	0	$	1

	Three Months Ended September 30, 2023
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	627	$	9,696	$	550	$	(2,611)	$	(249)	$	(579)	$	256
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	42	$	0	$	0	$	(104)	$	(112)	$	(275)	$	0
Gains (losses) recognized on derivatives	(15)		0		0		(38)		4		(273)		(42)
Gains (losses) recognized on hedged items(1)	(6)		0		0		38		(4)		313		42
Excluded component of fair value hedges(2)	0		0		0		0		0		(1)		0
Net income (expense) recognized on fair value hedges	$	21	$	0	$	0	$	(104)	$	(112)	$	(236)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income	$	0	$	(320)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		3		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(320)	$	3	$	0	$	0	$	0	$	1

	Nine Months Ended September 30, 2023
	Net Interest Income												Non-Interest Income
(Dollars in millions)	Investment Securities		Loans, Including Loans Held for Sale		Other		Interest-bearing Deposits		Securitized Debt Obligations		Senior and Subordinated Notes		Other
Total amounts presented in our consolidated statements of income	$	1,881	$	27,476	$	1,436	$	(6,744)	$	(696)	$	(1,596)	$	730
Fair value hedging relationships:
Interest rate and foreign exchange contracts:
Interest recognized on derivatives	$	113	$	0	$	0	$	(278)	$	(297)	$	(754)	$	0
Gains (losses) recognized on derivatives	(35)		0		0		(84)		(10)		(275)		(17)
Gains (losses) recognized on hedged items(1)	(22)		0		0		81		9		388		17
Excluded component of fair value hedges(2)	0		0		0		0		0		(2)		0
Net income (expense) recognized on fair value hedges	$	56	$	0	$	0	$	(281)	$	(298)	$	(643)	$	0
Cash flow hedging relationships:(3)
Interest rate contracts:
Realized gains reclassified from AOCI into net income	$	0	$	(879)	$	0	$	0	$	0	$	0	$	0
Foreign exchange contracts:
Realized gains (losses) reclassified from AOCI into net income(4)	0		0		9		0		0		0		1
Net income (expense) recognized on cash flow hedges	$	0	$	(879)	$	9	$	0	$	0	$	0	$	1

_________

(1)Includes amortization benefit of $21 million and $62 million for the three and nine months ended September 30, 2024, respectively, and amortization benefit of $20 million and $56 million for the three and nine months ended September 30, 2023, respectively, related to basis adjustments on discontinued hedges.

(2)Changes in fair values of cross-currency swaps attributable to changes in cross-currency basis spreads are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income (“OCI”). The initial value of the excluded component is recognized in earnings over the life of the swap under the amortization approach.

(3)See “Note 10—Stockholders’ Equity” for the effects of cash flow and net investment hedges on AOCI and amounts reclassified to net income, net of tax.

(4)We recognized a loss of $56 million and $1 million for the three and nine months ended September 30, 2024, respectively, and gain of $100 million and $70 million for the three and nine months ended September 30, 2023, respectively, on foreign exchange contracts reclassified from AOCI. These amounts were largely offset by the foreign currency transaction gains (losses) on our foreign currency denominated intercompany funding included in other non-interest income on our consolidated statements of income.

Gains (Losses) on Free-Standing Derivatives

The net impacts to our consolidated statements of income related to free-standing derivatives are presented below for the three and nine months ended September 30, 2024 and 2023. These gains or losses are recognized in other non-interest income on our consolidated statements of income.

Table 9.5: Gains (Losses) on Free-Standing Derivatives

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2024		2023		2024		2023
Gains (losses) recognized in other non-interest income:
Customer accommodation:
Interest rate contracts	$	3	$	7	$	20	$	26
Commodity contracts	5		11		13		28
Foreign exchange and other contracts	3		5		15		13
Total customer accommodation	11		23		48		67
Other interest rate exposures	48		81		206		199
Other contracts	(31)		(7)		(51)		(24)
Total	$	28	$	97	$	203	$	242

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Schedule of Preferred Stock

The following table summarizes our preferred stock outstanding as of September 30, 2024 and December 31, 2023.

Table 10.1: Preferred Stock Outstanding(1)

			Redeemable by Issuer Beginning	Per Annum Dividend Rate	Dividend Frequency	Liquidation Preference per Share		Total Shares Outstanding as of September 30, 2024	Carrying Value (in millions)
Series	Description	Issuance Date							September 30, 2024		December 31, 2023
Series I	5.000% Non-Cumulative	September 11, 2019	December 1, 2024	5.000%	Quarterly	$	1,000	1,500,000	$	1,462	$	1,462
Series J	4.800% Non-Cumulative	January 31,  2020	June 1, 2025	4.800	Quarterly	1,000		1,250,000	1,209		1,209
Series K	4.625% Non-Cumulative	September 17, 2020	December 1, 2025	4.625	Quarterly	1,000		125,000	122		122
Series L	4.375% Non-Cumulative	May 4, 2021	September 1, 2026	4.375	Quarterly	1,000		675,000	652		652
Series M	3.950% Fixed Rate Reset Non-Cumulative	June 10, 2021	September 1, 2026	3.950% through 8/31/2026; resets 9/1/2026 and every subsequent 5 year anniversary at 5-Year Treasury Rate +3.157%	Quarterly	1,000		1,000,000	988		988
Series N	4.250% Non-Cumulative	July 29, 2021	September 1, 2026	4.250%	Quarterly	1,000		425,000	412		412
Total									$	4,845	$	4,845

__________

(1)Except for Series M, ownership is held in the form of depositary shares, each representing a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock.

Change in AOCI Gain (Loss) by Component (Net of Tax)

The following table presents the changes in AOCI by component for the three and nine months ended September 30, 2024 and 2023.

Table 10.2: AOCI

	Three Months Ended September 30, 2024
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of June 30, 2024	$	(7,797)	$	(1,885)	$	12	$	(31)	$	(9,701)
Other comprehensive income before reclassifications	2,274		791		45		0		3,110
Amounts reclassified from AOCI into earnings	26		278		0		0		304
Other comprehensive income, net of tax	2,300		1,069		45		0		3,414
AOCI as of September 30, 2024	$	(5,497)	$	(816)	$	57	$	(31)	$	(6,287)

	Nine Months Ended September 30, 2024
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of December 31, 2023	$	(6,769)	$	(1,493)	$	26	$	(32)	$	(8,268)
Other comprehensive income (loss) before reclassifications	1,246		(21)		31		1		1,257
Amounts reclassified from AOCI into earnings	26		698		0		0		724
Other comprehensive income, net of tax	1,272		677		31		1		1,981
AOCI as of September 30, 2024	$	(5,497)	$	(816)	$	57	$	(31)	$	(6,287)

	Three Months Ended September 30, 2023
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of June 30, 2023	$	(7,602)	$	(2,205)	$	27	$	(38)	$	(9,818)
Other comprehensive income (loss) before reclassifications	(2,108)		(424)		(39)		0		(2,571)
Amounts reclassified from AOCI into earnings	0		165		0		0		165
Other comprehensive income (loss), net of tax	(2,108)		(259)		(39)		0		(2,406)
AOCI as of September 30, 2023	$	(9,710)	$	(2,464)	$	(12)	$	(38)	$	(12,224)

	Nine Months Ended September 30, 2023
(Dollars in millions)	Securities Available for Sale		Hedging Relationships(1)		Foreign Currency Translation Adjustments(2)		Other		Total
AOCI as of December 31, 2022	$	(7,676)	$	(2,182)	$	(20)	$	(38)	$	(9,916)
Other comprehensive income (loss) before reclassifications	(2,034)		(890)		8		0		(2,916)
Amounts reclassified from AOCI into earnings	0		608		0		0		608
Other comprehensive income (loss), net of tax	(2,034)		(282)		8		0		(2,308)
AOCI as of September 30, 2023	$	(9,710)	$	(2,464)	$	(12)	$	(38)	$	(12,224)

__________

(1)Includes amounts related to cash flow hedges as well as the excluded component of cross-currency swaps designated as fair value hedges.

(2)Includes other comprehensive losses of $134 million and $72 million for the three and nine months ended September 30, 2024, respectively, and other comprehensive gains of $115 million and losses of $1 million for the three and nine months ended September 30, 2023, respectively, from hedging instruments designated as net investment hedges.

Reclassifications from AOCI

The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the three and nine months ended September 30, 2024 and 2023.

Table 10.3: Reclassifications from AOCI

(Dollars in millions)		Three Months Ended September 30,				Nine Months Ended September 30,
AOCI Components	Affected Income Statement Line Item	2024		2023		2024		2023
Securities available for sale:
	Non-interest income (expense)	$	(34)	$	0	$	(34)	$	0
	Income tax provision (benefit)	(8)		0		(8)		0
	Net income (loss)	(26)		0		(26)		0
Hedging relationships:
Interest rate contracts:	Interest income (expense)	(314)		(320)		(936)		(879)
Foreign exchange contracts:	Interest income	2		3		7		9
	Interest income (expense)	0		(1)		7		(2)
	Non-interest income (expense)	(56)		100		(1)		70
	Income (loss) from continuing operations before income taxes	(368)		(218)		(923)		(802)
	Income tax provision (benefit)	(90)		(53)		(225)		(194)
	Net income (loss)	(278)		(165)		(698)		(608)
Other:
	Non-interest income and non-interest expense	0		0		0		0
	Income tax provision (benefit)	0		0		0		0
	Net income (loss)	0		0		0		0
Total reclassifications		$	(304)	$	(165)	$	(724)	$	(608)

Components of Other Comprehensive Income (Loss) and Related Tax Impact

The table below summarizes other comprehensive income (loss) activity and the related tax impact for the three and nine months ended September 30, 2024 and 2023.

Table 10.4: Other Comprehensive Income (Loss)

	Three Months Ended September 30,
	2024						2023
(Dollars in millions)	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale	$	3,033	$	733	$	2,300	$	(2,780)	$	(672)	$	(2,108)
Net unrealized gains (losses) on hedging relationships	1,412		343		1,069		(342)		(83)		(259)
Foreign currency translation adjustments(1)	2		(43)		45		(2)		37		(39)
Other comprehensive income (loss)	$	4,447	$	1,033	$	3,414	$	(3,124)	$	(718)	$	(2,406)

	Nine Months Ended September 30,
	2024						2023
(Dollars in millions)	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale	$	1,674	$	402	$	1,272	$	(2,684)	$	(650)	$	(2,034)
Net unrealized gains (losses) on hedging relationships	894		217		677		(372)		(90)		(282)
Foreign currency translation adjustments(1)	8		(23)		31		8		0		8
Other	1		0		1		0		0		0
Other comprehensive income (loss)	$	2,577	$	596	$	1,981	$	(3,048)	$	(740)	$	(2,308)

__________

(1)Includes the impact of hedging instruments designated as net investment hedges.

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Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings Per Common Share

The following table sets forth the computation of basic and diluted earnings per common share.

Table 11.1: Computation of Basic and Diluted Earnings per Common Share

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars and shares in millions, except per share data)	2024		2023		2024		2023
Net income	$	1,777	$	1,790	$	3,654	$	4,181
Dividends and undistributed earnings allocated to participating securities	(28)		(28)		(60)		(67)
Preferred stock dividends	(57)		(57)		(171)		(171)
Net income available to common stockholders	$	1,692	$	1,705	$	3,423	$	3,943
Total weighted-average basic common shares outstanding	383.0		382.5		382.8		382.7
Effect of dilutive securities:(1)
Stock options	0.1		0.1		0.2		0.1
Other contingently issuable shares	0.6		0.7		0.7		0.8
Total effect of dilutive securities	0.7		0.8		0.9		0.9
Total weighted-average diluted common shares outstanding	383.7		383.3		383.7		383.6
Basic earnings per common share:
Net income per basic common share	$	4.42	$	4.46	$	8.94	$	10.31
Diluted earnings per common share:(1)
Net income per diluted common share	$	4.41	$	4.45	$	8.92	$	10.28

__________

(1)Excluded from the computation of diluted earnings per share were awards of 43 thousand shares and 13 thousand shares for the nine months ended September 30, 2024 and 2023, respectively, because their inclusion would be anti-dilutive. There were no awards excluded from the computation of dilutive earning per share for the three months ended September 30, 2024 and 2023.

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Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table displays our assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis as of September 30, 2024 and December 31, 2023.

Table 12.1: Assets and Liabilities Measured at Fair Value on a Recurring Basis

	September 30, 2024
	Fair Value Measurements Using						Netting Adjustments(1)
(Dollars in millions)	Level 1		Level 2		Level 3				Total
Assets:
Securities available for sale:
U.S. Treasury securities	$	6,032	$	0	$	0	$	0	$	6,032
RMBS	0		66,127		180		0		66,307
CMBS	0		8,181		2		0		8,183
Other securities	131		2,847		0		0		2,978
Total securities available for sale	6,163		77,155		182		0		83,500
Loans held for sale	0		77		0		0		77
Other assets:
Derivative assets(2)	866		929		613		(725)		1,683
Other(3)	675		0		34		0		709
Total assets	$	7,704	$	78,161	$	829	$	(725)	$	85,969
Liabilities:
Other liabilities:
Derivative liabilities(2)	$	574	$	1,515	$	568	$	(622)	$	2,035
Total liabilities	$	574	$	1,515	$	568	$	(622)	$	2,035

	December 31, 2023
	Fair Value Measurements Using						Netting Adjustments(1)
(Dollars in millions)	Level 1		Level 2		Level 3				Total
Assets:
Securities available for sale:
U.S. Treasury securities	$	5,282	$	0	$	0	$	0	$	5,282
RMBS	0		63,492		146		0		63,638
CMBS	0		8,191		132		0		8,323
Other securities	126		1,748		0		0		1,874
Total securities available for sale	5,408		73,431		278		0		79,117
Loans held for sale	0		347		0		0		347
Other assets:
Derivative assets(2)	788		1,001		886		(1,005)		1,670
Other(3)	589		3		35		0		627
Total assets	$	6,785	$	74,782	$	1,199	$	(1,005)	$	81,761
Liabilities:
Other liabilities:
Derivative liabilities(2)	$	449	$	1,655	$	828	$	(597)	$	2,335
Total liabilities	$	449	$	1,655	$	828	$	(597)	$	2,335

__________

(1)Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. See “Note 9—Derivative Instruments and Hedging Activities” for additional information.

(2)Does not reflect approximately $3 million and $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of September 30, 2024 and December 31, 2023, respectively. Non-performance risk is included in the measurement of derivative assets and liabilities on our consolidated balance sheets, and is recorded through non-interest income in the consolidated statements of income.

(3)As of September 30, 2024 and December 31, 2023, other includes retained interests in securitizations of $34 million and $35 million, deferred compensation plan assets of $670 million and $578 million and equity securities of $5 million (including unrealized gains of $5 million) and $14 million (including unrealized gains of $5 million), respectively.

Schedule of Level 3 Inputs Reconciliation

The table below presents a reconciliation for all assets and liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2024 and 2023. Generally, transfers into Level 3 were primarily driven by the usage of unobservable assumptions in the pricing of these financial instruments as evidenced by wider pricing variations among pricing vendors and transfers out of Level 3 were primarily driven by the usage of assumptions corroborated by market observable information as evidenced by tighter pricing among multiple pricing sources.

Table 12.2: Level 3 Recurring Fair Value Rollforward

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2024
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2024(1)
(Dollars in millions)	Balance, July 1, 2024		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2024
Securities available for sale:(2)
RMBS	$	304	$	2	$	11	$	0	$	0	$	0	$	(4)	$	2	$	(135)	$	180	$	2
CMBS	2		0		0		0		0		0		0		0		0		2		0
Total securities available for sale	306		2		11		0		0		0		(4)		2		(135)		182		2
Other assets:
Retained interests in securitizations	34		0		0		0		0		0		0		0		0		34		0
Net derivative assets (liabilities)(3)	69		(20)		0		0		0		4		(8)		0		0		45		(15)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2024
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2024(1)
(Dollars in millions)	Balance, January 1, 2024		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2024
Securities available for sale:(2)
RMBS	$	146	$	6	$	8	$	0	$	0	$	0	$	(9)	$	187	$	(158)	$	180	$	5
CMBS	132		0		(3)		0		0		0		(3)		0		(124)		2		0
Total securities available for sale	278		6		5		0		0		0		(12)		187		(282)		182		5
Other assets:
Retained interests in securitizations	35		(1)		0		0		0		0		0		0		0		34		(1)
Net derivative assets (liabilities)(3)	58		(17)		0		0		0		1		3		0		0		45		(18)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2023
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2023(1)
(Dollars in millions)	Balance, July 1, 2023		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2023
Securities available for sale:(2)
RMBS	$	206	$	2	$	(5)	$	0	$	0	$	0	$	(6)	$	2	$	(50)	$	149	$	2
CMBS	133		0		(6)		0		0		0		(1)		0		0		126		0
Total securities available for sale	339		2		(11)		0		0		0		(7)		2		(50)		275		2
Other assets:
Retained interests in securitizations	36		(1)		0		0		0		0		0		0		0		35		(1)
Net derivative assets (liabilities)(3)	64		(2)		0		0		0		3		18		(15)		0		68		4

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2023
			Total Gains (Losses) (Realized/Unrealized)																		Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2023(1)
(Dollars in millions)	Balance, January 1, 2023		Included in Net Income(1)		Included in OCI		Purchases		Sales		Issuances		Settlements		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2023
Securities available for sale:(2)
RMBS	$	236	$	6	$	(4)	$	0	$	0	$	0	$	(17)	$	47	$	(119)	$	149	$	5
CMBS	142		0		(12)		0		0		0		(4)		0		0		126		0
Total securities available for sale	378		6		(16)		0		0		0		(21)		47		(119)		275		5
Other assets:
Retained interests in securitizations	36		(1)		0		0		0		0		0		0		0		35		(1)
Net derivative assets (liabilities)(3)(4)	5		(20)		0		0		0		176		75		(167)		(1)		68		71

_________

(1)Realized gains (losses) on securities available for sale are included in net securities gains (losses) and retained interests in securitizations are reported as a component of non-interest income in our consolidated statements of income. Gains (losses) on derivatives are included as a component of net interest income or non-interest income in our consolidated statements of income.

(2)For both the three and nine months ended September 30, 2024, included in OCI related to Level 3 securities available for sale still held as of September 30, 2024 were net unrealized losses of $2 million. For the three and nine months ended September 30, 2023, included in OCI related to Level 3 securities available for sale still held as of September 30, 2023 were net unrealized losses of $9 million and $14 million, respectively.

(3)Includes derivative assets and liabilities of $613 million and $568 million, respectively, as of September 30, 2024 and $1.3 billion and $1.3 billion, respectively, as of September 30, 2023.

(4)Transfers into Level 3 primarily consist of term Secured Overnight Financing Rate (“SOFR”)-indexed interest rate derivatives.

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis Quantitative Information

The following table presents the significant unobservable inputs used to determine the fair values of our Level 3 financial instruments on a recurring basis. We utilize multiple vendor pricing services to obtain fair value for our securities. Several of our vendor pricing services are only able to provide unobservable input information for a limited number of securities due to software licensing restrictions. Other vendor pricing services are able to provide unobservable input information for all securities for which they provide a valuation. As a result, the unobservable input information for the securities available for sale presented below represents a composite summary of all information we are able to obtain. The unobservable input information for all other Level 3 financial instruments is based on the assumptions used in our internal valuation models.

Table 12.3: Quantitative Information about Level 3 Fair Value Measurements

	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in millions)	Fair Value at September 30, 2024		Significant Valuation Techniques	Significant Unobservable Inputs	Range	Weighted Average(1)
Securities available for sale:
RMBS	$	180	Discounted cash flows (vendor pricing)	Yield Voluntary prepayment rate Default rate Loss severity	4-14% 0-12% 0-6% 25-80%	6% 7% 1% 61%
CMBS	2		Discounted cash flows (vendor pricing)	Yield	5-7%	7%
Other assets:
Retained interests in securitizations(2)	34		Discounted cash flows	Life of receivables (months) Voluntary prepayment rate Discount rate Default rate Loss severity	31-73 7-9% 5-14% 1-2% 46-155%	N/A
Net derivative assets (liabilities)	45		Discounted cash flows	Swap rates	3-5%	3%

	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in millions)	Fair Value at December 31, 2023		Significant Valuation Techniques	Significant Unobservable Inputs	Range	Weighted Average(1)
Securities available for sale:
RMBS	$	146	Discounted cash flows (vendor pricing)	Yield Voluntary prepayment rate Default rate Loss severity	2-19% 0-12% 0-10% 30-80%	7% 7% 1% 61%
CMBS	132		Discounted cash flows (vendor pricing)	Yield	5-7%	5%
Other assets:
Retained interests in securitizations(2)	35		Discounted cash flows	Life of receivables (months) Voluntary prepayment rate Discount rate Default rate Loss severity	33-69 9% 5-14% 2% 53-163%	N/A
Net derivative assets (liabilities)	58		Discounted cash flows	Swap rates	3-5%	4%

__________

(1)Weighted averages are calculated by using the product of the input multiplied by the relative fair value of the instruments.

(2)Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs.

Schedule of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents the carrying value of the assets measured at fair value on a nonrecurring basis and still held as of September 30, 2024 and December 31, 2023, and for which a nonrecurring fair value measurement was recorded during the nine and twelve months then ended.

Table 12.4: Nonrecurring Fair Value Measurements

	September 30, 2024
	Estimated Fair Value Hierarchy				Total
(Dollars in millions)	Level 2		Level 3
Loans held for investment	$	0	$	738	$	738
Loans held for sale	10		0		10
Other assets(1)	0		100		100
Total	$	10	$	838	$	848

	December 31, 2023
	Estimated Fair Value Hierarchy				Total
(Dollars in millions)	Level 2		Level 3
Loans held for investment	$	0	$	545	$	545
Loans held for sale	37		0		37
Other assets(1)	0		214		214
Total	$	37	$	759	$	796

__________

(1)As of September 30, 2024, other assets includes investments accounted for under measurement alternative of $47 million, cost method investments of $1 million and repossessed assets of $52 million. As of December 31, 2023, other assets included investments accounted for under measurement alternative of $46 million, repossessed assets of $45 million and long-lived assets held for sale and right-of-use assets totaling $123 million.

Schedule of Earnings Related to Assets Measured at Fair Value on Nonrecurring Basis

The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that are still held at September 30, 2024 and 2023.

Table 12.5: Nonrecurring Fair Value Measurements Included in Earnings

	Total Gains (Losses)
	Nine Months Ended September 30,
(Dollars in millions)	2024		2023
Loans held for investment	$	(224)	$	(315)
Loans held for sale	(6)		0
Other assets(1)	(64)		(52)
Total	$	(294)	$	(367)

__________

(1)Other assets primarily include fair value adjustments related to repossessed assets and equity investments accounted for under the measurement alternative.

Schedule of Fair Value of Financial Instruments

The following table presents the carrying value and estimated fair value, including the level within the fair value hierarchy, of our financial instruments that are not measured at fair value on a recurring basis on our consolidated balance sheets as of September 30, 2024 and December 31, 2023.

Table 12.6: Fair Value of Financial Instruments

	September 30, 2024
	Carrying Value		Estimated Fair Value		Estimated Fair Value Hierarchy
(Dollars in millions)					Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	49,298	$	49,298	$	3,976	$	45,322	$	0
Restricted cash for securitization investors	421		421		421		0		0
Net loans held for investment	303,709		308,901		0		0		308,901
Loans held for sale	19		19		0		19		0
Interest receivable	2,577		2,577		0		2,577		0
Other investments(1)	1,330		1,330		0		1,330		0
Financial liabilities:
Deposits with defined maturities	77,678		77,893		0		77,893		0
Securitized debt obligations	15,881		15,939		0		15,939		0
Senior and subordinated notes	32,911		33,694		0		33,694		0
Federal funds purchased and securities loaned or sold under agreements to repurchase	520		520		0		520		0
Interest payable	705		705		0		705		0

	December 31, 2023
	Carrying Value		Estimated Fair Value		Estimated Fair Value Hierarchy
(Dollars in millions)					Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	43,297	$	43,297	$	4,903	$	38,394	$	0
Restricted cash for securitization investors	458		458		458		0		0
Net loans held for investment	305,176		308,044		0		0		308,044
Loans held for sale	507		515		0		515		0
Interest receivable	2,478		2,478		0		2,478		0
Other investments(1)	1,329		1,329		0		1,329		0
Financial liabilities:
Deposits with defined maturities	83,014		82,990		0		82,990		0
Securitized debt obligations	18,043		18,067		0		18,067		0
Senior and subordinated notes	31,248		31,524		0		31,524		0
Federal funds purchased and securities loaned or sold under agreements to repurchase	538		538		0		538		0
Interest payable	649		649		0		649		0

__________

(1)Other investments include FHLB and Federal Reserve stock. These investments are included in other assets on our consolidated balance sheets.

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Business Segments and Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Results and Reconciliation

The following table presents our business segment results for the three and nine months ended September 30, 2024 and 2023, selected balance sheet data as of September 30, 2024 and 2023, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits.

Table 13.1: Segment Results and Reconciliation

	Three Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	5,743	$	2,028	$	596	$	(291)	$	8,076
Non-interest income (loss)	1,509		182		292		(45)		1,938
Total net revenue (loss)(2)	7,252		2,210		888		(336)		10,014
Provision (benefit) for credit losses	2,084		351		48		(1)		2,482
Non-interest expense	3,367		1,331		495		121		5,314
Income (loss) from continuing operations before income taxes	1,801		528		345		(456)		2,218
Income tax provision (benefit)	427		125		82		(193)		441
Income (loss) from continuing operations, net of tax	$	1,374	$	403	$	263	$	(263)	$	1,777
Loans held for investment	$	156,651	$	76,758	$	86,834	$	0	$	320,243
Deposits	0		309,569		30,598		13,464		353,631

	Nine Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	16,309	$	6,064	$	1,804	$	(1,067)	$	23,110
Non-interest income (loss)	4,491		513		844		(36)		5,812
Total net revenue (loss)(2)	20,800		6,577		2,648		(1,103)		28,922
Provision (benefit) for credit losses	7,888		1,107		80		(1)		9,074
Non-interest expense	9,730		3,827		1,493		347		15,397
Income (loss) from continuing operations before income taxes	3,182		1,643		1,075		(1,449)		4,451
Income tax provision (benefit)	756		388		254		(601)		797
Income (loss) from continuing operations, net of tax	$	2,426	$	1,255	$	821	$	(848)	$	3,654
Loans held for investment	$	156,651	$	76,758	$	86,834	$	0	$	320,243
Deposits	0		309,569		30,598		13,464		353,631

	Three Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	5,114	$	2,133	$	621	$	(445)	$	7,423
Non-interest income	1,513		142		288		0		1,943
Total net revenue (loss)(2)	6,627		2,275		909		(445)		9,366
Provision for credit losses	1,953		213		116		2		2,284
Non-interest expense	3,015		1,262		512		71		4,860
Income (loss) from continuing operations before income taxes	1,659		800		281		(518)		2,222
Income tax provision (benefit)	393		189		67		(217)		432
Income (loss) from continuing operations, net of tax	$	1,266	$	611	$	214	$	(301)	$	1,790
Loans held for investment	$	146,783	$	76,844	$	91,153	$	0	$	314,780
Deposits	0		290,789		36,035		19,187		346,011

                                                                                                                                                                                                                                                                                                                                                                                                                                    

	Nine Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	14,498	$	6,762	$	1,901	$	(1,439)	$	21,722
Non-interest income	4,375		426		757		1		5,559
Total net revenue (loss)(2)	18,873		7,188		2,658		(1,438)		27,281
Provision for credit losses	6,298		747		521		3		7,569
Non-interest expense	9,073		3,776		1,524		226		14,599
Income (loss) from continuing operations before income taxes	3,502		2,665		613		(1,667)		5,113
Income tax provision (benefit)	830		629		145		(672)		932
Income (loss) from continuing operations, net of tax	$	2,672	$	2,036	$	468	$	(995)	$	4,181
Loans held for investment	$	146,783	$	76,844	$	91,153	$	0	$	314,780
Deposits	0		290,789		36,035		19,187		346,011

_________

(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(2)Total net revenue was reduced by $624 million and $1.9 billion in the three and nine months ended September 30, 2024, respectively, and $449 million and $1.3 billion in the three and nine months ended September 30, 2023, respectively, for credit card finance charges and fees charged off as uncollectible.

Disaggregation of Revenue

The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the three and nine months ended September 30, 2024 and 2023.

Table 13.2: Revenue from Contracts with Customers and Reconciliation to Segment Results

	Three Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,086	$	113	$	28	$	1	$	1,228
Service charges and other customer-related fees	0		23		92		0		115
Other	67		36		1		0		104
Total contract revenue	1,153		172		121		1		1,447
Revenue (reduction) from other sources	356		10		171		(46)		491
Total non-interest income (loss)	$	1,509	$	182	$	292	$	(45)	$	1,938

	Nine Months Ended September 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	3,222	$	318	$	81	$	1	$	3,622
Service charges and other customer-related fees	0		66		239		0		305
Other	271		101		6		0		378
Total contract revenue	3,493		485		326		1		4,305
Revenue (reduction) from other sources	998		28		518		(37)		1,507
Total non-interest income (loss)	$	4,491	$	513	$	844	$	(36)	$	5,812

	Three Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,115	$	92	$	27	$	0	$	1,234
Service charges and other customer-related fees	0		21		78		0		99
Other	111		28		3		0		142
Total contract revenue	1,226		141		108		0		1,475
Revenue from other sources	287		1		180		0		468
Total non-interest income	$	1,513	$	142	$	288	$	0	$	1,943

	Nine Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	3,251	$	270	$	64	$	1	$	3,586
Service charges and other customer-related fees	0		64		173		(1)		236
Other	257		74		16		0		347
Total contract revenue	3,508		408		253		0		4,169
Revenue from other sources	867		18		504		1		1,390
Total non-interest income	$	4,375	$	426	$	757	$	1	$	5,559

__________

(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(2)Interchange fees are presented net of customer reward expenses.

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Commitments, Contingencies, Guarantees and Others (Tables)

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Letter of Credit and Other Loan Commitments

The following table presents the contractual amount and carrying value of our unfunded lending commitments as of September 30, 2024 and December 31, 2023. The carrying value represents our reserve and deferred revenue on legally binding commitments.

Table 14.1: Unfunded Lending Commitments

	Contractual Amount				Carrying Value
(Dollars in millions)	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Credit card lines	$	412,905	$	392,867	N/A		N/A
Other loan commitments(1)	44,698		46,951		$	72	$	99
Standby letters of credit and commercial letters of credit(2)	1,266		1,465		27		23
Total unfunded lending commitments	$	458,869	$	441,283	$	99	$	122

__________

(1)Includes $5.0 billion and $4.7 billion of advised lines of credit as of September 30, 2024 and December 31, 2023, respectively.

(2)These financial guarantees have expiration dates that range from 2025 to 2027 as of September 30, 2024.

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Summary of Significant Accounting Policies - Segments (Details)	9 Months Ended
	Sep. 30, 2024 segment
Accounting Policies [Abstract]
Number of operating segments	3

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Business Combinations (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
	Feb. 19, 2024	Sep. 30, 2024	Sep. 30, 2024
Business Acquisition [Line Items]
Entity shares issued (in shares)	1.0192
Business combination, acquisition related costs		$ 63	$ 94
Discover | Series D Preferred Stock
Business Acquisition [Line Items]
Per annum dividend rate	6.125%

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Investment Securities - Additional Information (Details) - USD ($)			3 Months Ended		9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Debt Securities, Available-for-sale [Line Items]
Accrued interest receivable	$ 264,000,000	$ 227,000,000
Proceeds from sales			$ 175,000,000	$ 0	$ 175,000,000	$ 0
Gain (loss) on debt securities, available- for-sale			(35,000,000)		(35,000,000)
Investment securities	40,100,000,000	45,100,000,000	40,100,000,000		40,100,000,000
Securities received as collateral	$ 11,000,000	$ 16,000,000	$ 11,000,000		$ 11,000,000
Investment securities available for sale | Government Contracts Concentration Risk | US Treasury and Agency securities
Debt Securities, Available-for-sale [Line Items]
Percentage of portfolio	96.00%	97.00%

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Investment Securities - Investment Available for Sale (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 90,771	$ 88,063
Allowance for Credit Losses	(3)	(4)
Gross Unrealized Gains	343	214
Gross Unrealized Losses	(7,611)	(9,156)
Fair Value	83,500	79,117
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	6,035	5,330
Allowance for Credit Losses	0	0
Gross Unrealized Gains	10	1
Gross Unrealized Losses	(13)	(49)
Fair Value	6,032	5,282
RMBS, Agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	72,576	71,294
Allowance for Credit Losses	0	0
Gross Unrealized Gains	205	104
Gross Unrealized Losses	(7,130)	(8,450)
Fair Value	65,651	62,948
RMBS, Non-agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	576	610
Allowance for Credit Losses	(3)	(4)
Gross Unrealized Gains	86	89
Gross Unrealized Losses	(3)	(5)
Fair Value	656	690
Total RMBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	73,152	71,904
Allowance for Credit Losses	(3)	(4)
Gross Unrealized Gains	291	193
Gross Unrealized Losses	(7,133)	(8,455)
Fair Value	66,307	63,638
Agency CMBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	8,613	8,961
Allowance for Credit Losses	0	0
Gross Unrealized Gains	35	14
Gross Unrealized Losses	(465)	(652)
Fair Value	8,183	8,323
Other securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,971	1,868
Allowance for Credit Losses	0	0
Gross Unrealized Gains	7	6
Gross Unrealized Losses	0	0
Fair Value	2,978	1,874
Asset-backed Securities
Debt Securities, Available-for-sale [Line Items]
Fair Value	$ 2,400	$ 1,400

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Investment Securities - Securities in Gross Unrealized Loss Position (Details) $ in Millions	Sep. 30, 2024 USD ($) security	Dec. 31, 2023 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Fair Value - Less than 12 Months	$ 6,551	$ 5,068
Gross Unrealized Loss - Less than 12 Months	(15)	(50)
Fair Value - 12 Months or Longer	59,724	62,711
Gross Unrealized Loss - 12 Months or Longer	(7,593)	(9,102)
Fair Value - Total	66,275	67,779
Gross Unrealized Loss - Total	$ (7,608)	$ (9,152)
Number of securities in gross unrealized loss positions | security	2,500	2,740
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Fair Value - Less than 12 Months	$ 3,772	$ 733
Gross Unrealized Loss - Less than 12 Months	(4)	0
Fair Value - 12 Months or Longer	1,331	2,242
Gross Unrealized Loss - 12 Months or Longer	(9)	(49)
Fair Value - Total	5,103	2,975
Gross Unrealized Loss - Total	(13)	(49)
RMBS, Agency
Debt Securities, Available-for-sale [Line Items]
Fair Value - Less than 12 Months	1,807	3,511
Gross Unrealized Loss - Less than 12 Months	(10)	(43)
Fair Value - 12 Months or Longer	52,413	53,987
Gross Unrealized Loss - 12 Months or Longer	(7,120)	(8,407)
Fair Value - Total	54,220	57,498
Gross Unrealized Loss - Total	(7,130)	(8,450)
RMBS, Non-agency
Debt Securities, Available-for-sale [Line Items]
Fair Value - Less than 12 Months	4	1
Gross Unrealized Loss - Less than 12 Months	0	0
Fair Value - 12 Months or Longer	10	13
Gross Unrealized Loss - 12 Months or Longer	0	(1)
Fair Value - Total	14	14
Gross Unrealized Loss - Total	0	(1)
Total RMBS
Debt Securities, Available-for-sale [Line Items]
Fair Value - Less than 12 Months	1,811	3,512
Gross Unrealized Loss - Less than 12 Months	(10)	(43)
Fair Value - 12 Months or Longer	52,423	54,000
Gross Unrealized Loss - 12 Months or Longer	(7,120)	(8,408)
Fair Value - Total	54,234	57,512
Gross Unrealized Loss - Total	(7,130)	(8,451)
Agency CMBS
Debt Securities, Available-for-sale [Line Items]
Fair Value - Less than 12 Months	192	547
Gross Unrealized Loss - Less than 12 Months	(1)	(7)
Fair Value - 12 Months or Longer	5,966	6,465
Gross Unrealized Loss - 12 Months or Longer	(464)	(645)
Fair Value - Total	6,158	7,012
Gross Unrealized Loss - Total	(465)	(652)
Other securities
Debt Securities, Available-for-sale [Line Items]
Fair Value - Less than 12 Months	776	276
Gross Unrealized Loss - Less than 12 Months	0	0
Fair Value - 12 Months or Longer	4	4
Gross Unrealized Loss - 12 Months or Longer	0	0
Fair Value - Total	780	280
Gross Unrealized Loss - Total	$ 0	$ 0

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Investment Securities - Contractual Maturities and Weighted-Average Yields of Securities (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Fair value of securities available for sale:
Due in 1 Year or Less	$ 4,194
Due > 1 Year through 5 Years	6,875
Due > 5 Years through 10 Years	5,330
Due > 10 Years	67,101
Total	83,500	$ 79,117
Amortized cost of securities available for sale
Due in 1 Year or Less	4,204
Due > 1 Year through 5 Years	6,980
Due > 5 Years through 10 Years	5,569
Due > 10 Years	74,018
Total	$ 90,771	88,063
Weighted-average yield for securities available for sale
Due in 1 Year or Less	4.74%
Due > 1 Year through 5 Years	4.07%
Due > 5 Years through 10 Years	3.89%
Due > 10 Years	3.16%
Total	3.35%
U.S. Treasury securities
Fair value of securities available for sale:
Due in 1 Year or Less	$ 3,334
Due > 1 Year through 5 Years	1,254
Due > 5 Years through 10 Years	1,444
Due > 10 Years	0
Total	6,032	5,282
Amortized cost of securities available for sale
Total	6,035	5,330
RMBS, Agency
Fair value of securities available for sale:
Due in 1 Year or Less	1
Due > 1 Year through 5 Years	74
Due > 5 Years through 10 Years	1,099
Due > 10 Years	64,477
Total	65,651	62,948
Amortized cost of securities available for sale
Total	72,576	71,294
RMBS, Non-agency
Fair value of securities available for sale:
Due in 1 Year or Less	0
Due > 1 Year through 5 Years	0
Due > 5 Years through 10 Years	12
Due > 10 Years	644
Total	656	690
Amortized cost of securities available for sale
Total	576	610
Total RMBS
Fair value of securities available for sale:
Due in 1 Year or Less	1
Due > 1 Year through 5 Years	74
Due > 5 Years through 10 Years	1,111
Due > 10 Years	65,121
Total	66,307	63,638
Amortized cost of securities available for sale
Total	$ 73,152	71,904
Weighted-average yield for securities available for sale
Weighted-average expected life	7 years 4 months 24 days
Agency CMBS
Fair value of securities available for sale:
Due in 1 Year or Less	$ 515
Due > 1 Year through 5 Years	2,930
Due > 5 Years through 10 Years	2,758
Due > 10 Years	1,980
Total	8,183	8,323
Amortized cost of securities available for sale
Total	$ 8,613	8,961
Weighted-average yield for securities available for sale
Weighted-average expected life	4 years 10 months 24 days
Other securities
Fair value of securities available for sale:
Due in 1 Year or Less	$ 344
Due > 1 Year through 5 Years	2,617
Due > 5 Years through 10 Years	17
Due > 10 Years	0
Total	2,978	1,874
Amortized cost of securities available for sale
Total	$ 2,971	$ 1,868

XML

Loans - Additional Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]
Number of portfolio segments | segment			3
Accrued interest receivable	$ 2,200		$ 2,200		$ 2,200
Net loans held for investment	303,709		303,709		305,176
Federal Home Loan banks
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans held for investment	7,200		7,200		7,400
Remaining borrowing capacity	37,000		37,000		32,100
Federal Reserve Discount Window
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans held for investment	82,400		82,400		78,300
Remaining borrowing capacity	46,900		46,900		$ 41,400
Domestic credit card: | Domestic Credit Card and Commercial Banking Portfolios
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving loans converted to term during period	$ 267	$ 101	$ 588	$ 443

XML

Loans - Loan Portfolio Composition and Aging Analysis (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Current	$ 307,794	$ 307,695
Total	$ 320,243	$ 320,472
Current, percentage of total loans	96.11%	96.01%
Percentage of total loans	100.00%	100.00%
Unamortized premiums and discounts, deferred fees and costs	$ 1,300	$ 1,400
Credit Card:
Financing Receivable, Past Due [Line Items]
Current	149,547	147,412
Total	156,651	154,547
Consumer Banking:
Financing Receivable, Past Due [Line Items]
Current	71,911	70,097
Total	76,758	75,437
Consumer Banking: | Auto
Financing Receivable, Past Due [Line Items]
Current	70,682	68,768
Total	75,505	74,075
Consumer Banking: | Retail banking
Financing Receivable, Past Due [Line Items]
Current	1,229	1,329
Total	1,253	1,362
Commercial Banking:
Financing Receivable, Past Due [Line Items]
Current	86,336	90,186
Total	86,834	90,488
Commercial Banking: | Commercial and multifamily real estate
Financing Receivable, Past Due [Line Items]
Current	32,016	34,325
Total	32,199	34,446
Commercial Banking: | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Current	54,320	55,861
Total	54,635	56,042
30-59 days
Financing Receivable, Past Due [Line Items]
Delinquent Loans	$ 5,234	$ 5,367
Delinquent Loans, percentage of total loans	1.64%	1.68%
30-59 days | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	$ 2,098	$ 2,084
30-59 days | Consumer Banking:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	2,908	3,283
30-59 days | Consumer Banking: | Auto
Financing Receivable, Past Due [Line Items]
Delinquent Loans	2,895	3,268
30-59 days | Consumer Banking: | Retail banking
Financing Receivable, Past Due [Line Items]
Delinquent Loans	13	15
Total	13	15
30-59 days | Commercial Banking:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	228	0
30-59 days | Commercial Banking: | Commercial and multifamily real estate
Financing Receivable, Past Due [Line Items]
Delinquent Loans	114	0
30-59 days | Commercial Banking: | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Delinquent Loans	114	0
60-89 days
Financing Receivable, Past Due [Line Items]
Delinquent Loans	$ 3,072	$ 3,119
Delinquent Loans, percentage of total loans	0.96%	0.97%
60-89 days | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	$ 1,544	$ 1,547
60-89 days | Consumer Banking:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	1,454	1,558
60-89 days | Consumer Banking: | Auto
Financing Receivable, Past Due [Line Items]
Delinquent Loans	1,452	1,555
60-89 days | Consumer Banking: | Retail banking
Financing Receivable, Past Due [Line Items]
Delinquent Loans	2	3
Total	2	3
60-89 days | Commercial Banking:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	74	14
60-89 days | Commercial Banking: | Commercial and multifamily real estate
Financing Receivable, Past Due [Line Items]
Delinquent Loans	20	14
60-89 days | Commercial Banking: | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Delinquent Loans	54	0
Greater than 90 days
Financing Receivable, Past Due [Line Items]
Delinquent Loans	$ 4,143	$ 4,291
Delinquent Loans, percentage of total loans	1.29%	1.34%
Greater than 90 days | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	$ 3,462	$ 3,504
Greater than 90 days | Consumer Banking:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	485	499
Greater than 90 days | Consumer Banking: | Auto
Financing Receivable, Past Due [Line Items]
Delinquent Loans	476	484
Greater than 90 days | Consumer Banking: | Retail banking
Financing Receivable, Past Due [Line Items]
Delinquent Loans	9	15
Total	9	15
Greater than 90 days | Commercial Banking:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	196	288
Greater than 90 days | Commercial Banking: | Commercial and multifamily real estate
Financing Receivable, Past Due [Line Items]
Delinquent Loans	49	107
Greater than 90 days | Commercial Banking: | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Delinquent Loans	147	181
Total Delinquent Loans
Financing Receivable, Past Due [Line Items]
Delinquent Loans	$ 12,449	$ 12,777
Total Delinquent Loans, percentage of total loans	3.89%	3.99%
Total Delinquent Loans | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	$ 7,104	$ 7,135
Total Delinquent Loans | Consumer Banking:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	4,847	5,340
Total Delinquent Loans | Consumer Banking: | Auto
Financing Receivable, Past Due [Line Items]
Delinquent Loans	4,823	5,307
Total Delinquent Loans | Consumer Banking: | Retail banking
Financing Receivable, Past Due [Line Items]
Delinquent Loans	24	33
Total Delinquent Loans | Commercial Banking:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	498	302
Total Delinquent Loans | Commercial Banking: | Commercial and multifamily real estate
Financing Receivable, Past Due [Line Items]
Delinquent Loans	183	121
Total Delinquent Loans | Commercial Banking: | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Delinquent Loans	315	181
Domestic credit card: | Credit Card:
Financing Receivable, Past Due [Line Items]
Current	142,633	140,860
Total	149,400	147,666
Domestic credit card: | 30-59 days | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	1,982	1,968
Total	1,982	1,968
Domestic credit card: | 60-89 days | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	1,469	1,471
Total	1,469	1,471
Domestic credit card: | Greater than 90 days | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	3,316	3,367
Total	3,316	3,367
Domestic credit card: | Total Delinquent Loans | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	6,767	6,806
International card businesses: | Credit Card:
Financing Receivable, Past Due [Line Items]
Current	6,914	6,552
Total	7,251	6,881
International card businesses: | 30-59 days | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	116	116
Total	116	116
International card businesses: | 60-89 days | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	75	76
Total	75	76
International card businesses: | Greater than 90 days | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	146	137
Total	146	137
International card businesses: | Total Delinquent Loans | Credit Card:
Financing Receivable, Past Due [Line Items]
Delinquent Loans	$ 337	$ 329

XML

Loans - 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
> 90 Days and Accruing	$ 3,456		$ 3,456		$ 3,554
Nonperforming Loans	2,071		2,071		1,528
Nonperforming Loans Without an Allowance	$ 880		$ 880		$ 547
Percentage, 90 Days Past Due and Accruing	1.08%		1.08%		1.11%
Percentage, Nonperforming Loans	0.65%		0.65%		0.48%
Percentage, Nonperforming Loans Without an Allowance	0.27%		0.27%		0.17%
Interest income for loans classified as nonperforming	$ 6	$ 11	$ 70	$ 47
Credit Card:
Financing Receivable, Past Due [Line Items]
> 90 Days and Accruing	3,456		3,456		$ 3,499
Nonperforming Loans	11		11		9
Nonperforming Loans Without an Allowance	0		0		0
Credit Card: | Domestic credit card:
Financing Receivable, Past Due [Line Items]
> 90 Days and Accruing	3,316		3,316		3,367
Nonperforming Loans Without an Allowance	0		0		0
Credit Card: | International card businesses:
Financing Receivable, Past Due [Line Items]
> 90 Days and Accruing	140		140		132
Nonperforming Loans	11		11		9
Nonperforming Loans Without an Allowance	0		0		0
Consumer Banking:
Financing Receivable, Past Due [Line Items]
> 90 Days and Accruing	0		0		0
Nonperforming Loans	712		712		758
Nonperforming Loans Without an Allowance	14		14		19
Consumer Banking: | Auto
Financing Receivable, Past Due [Line Items]
> 90 Days and Accruing	0		0		0
Nonperforming Loans	685		685		712
Nonperforming Loans Without an Allowance	0		0		0
Consumer Banking: | Retail banking
Financing Receivable, Past Due [Line Items]
> 90 Days and Accruing	0		0		0
Nonperforming Loans	27		27		46
Nonperforming Loans Without an Allowance	14		14		19
Commercial Banking:
Financing Receivable, Past Due [Line Items]
> 90 Days and Accruing	0		0		55
Nonperforming Loans	1,348		1,348		761
Nonperforming Loans Without an Allowance	866		866		528
Commercial Banking: | Commercial and multifamily real estate
Financing Receivable, Past Due [Line Items]
> 90 Days and Accruing	0		0		0
Nonperforming Loans	630		630		425
Nonperforming Loans Without an Allowance	314		314		335
Commercial Banking: | Commercial and industrial
Financing Receivable, Past Due [Line Items]
> 90 Days and Accruing	0		0		55
Nonperforming Loans	718		718		336
Nonperforming Loans Without an Allowance	$ 552		$ 552		$ 193

XML

Loans - Credit Card Delinquency Status (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 320,243	$ 320,472
Credit Card:
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving Loans	156,093	154,091
Revolving Loans Converted to Term	558	456
Total	156,651	154,547
Domestic credit card: | Credit Card:
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving Loans	148,892	147,254
Revolving Loans Converted to Term	508	412
Total	149,400	147,666
International card businesses: | Credit Card:
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving Loans	7,201	6,837
Revolving Loans Converted to Term	50	44
Total	7,251	6,881
Current | Domestic credit card: | Credit Card:
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving Loans	142,201	140,521
Revolving Loans Converted to Term	432	339
Total	142,633	140,860
Current | International card businesses: | Credit Card:
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving Loans	6,877	6,521
Revolving Loans Converted to Term	37	31
Total	6,914	6,552
30-59 days | Domestic credit card: | Credit Card:
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving Loans	1,952	1,940
Revolving Loans Converted to Term	30	28
Total	1,982	1,968
30-59 days | International card businesses: | Credit Card:
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving Loans	111	112
Revolving Loans Converted to Term	5	4
Total	116	116
60-89 days | Domestic credit card: | Credit Card:
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving Loans	1,450	1,454
Revolving Loans Converted to Term	19	17
Total	1,469	1,471
60-89 days | International card businesses: | Credit Card:
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving Loans	71	72
Revolving Loans Converted to Term	4	4
Total	75	76
Greater than 90 days | Domestic credit card: | Credit Card:
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving Loans	3,289	3,339
Revolving Loans Converted to Term	27	28
Total	3,316	3,367
Greater than 90 days | International card businesses: | Credit Card:
Financing Receivable, Allowance for Credit Loss [Line Items]
Revolving Loans	142	132
Revolving Loans Converted to Term	4	5
Total	$ 146	$ 137

XML

Loans - Consumer Banking Portfolio by Credit Quality Indicator (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 320,243	$ 320,472
Consumer Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
Term Loans by Vintage Year, Year 1	23,264	23,828
Term Loans by Vintage Year, Year 2	18,455	22,721
Term Loans by Vintage Year, Year 3	16,639	17,192
Term Loans by Vintage Year, Year 4	11,779	6,876
Term Loans by Vintage Year, Year 5	4,151	3,053
Prior	2,110	1,380
Total Term Loans	76,398	75,050
Revolving Loans	356	382
Revolving Loans Converted to Term	4	5
Total	76,758	75,437
Auto | Consumer Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
Term Loans by Vintage Year, Year 1	23,151	23,729
Term Loans by Vintage Year, Year 2	18,377	22,564
Term Loans by Vintage Year, Year 3	16,547	17,134
Term Loans by Vintage Year, Year 4	11,727	6,810
Term Loans by Vintage Year, Year 5	4,096	2,936
Prior	1,607	902
Total Term Loans	75,505	74,075
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	75,505	74,075
Retail banking | Consumer Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
Term Loans by Vintage Year, Year 1	113	99
Term Loans by Vintage Year, Year 2	78	157
Term Loans by Vintage Year, Year 3	92	58
Term Loans by Vintage Year, Year 4	52	66
Term Loans by Vintage Year, Year 5	55	117
Prior	503	478
Total Term Loans	893	975
Revolving Loans	356	382
Revolving Loans Converted to Term	4	5
Total	1,253	1,362
Current | Retail banking | Consumer Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
Term Loans by Vintage Year, Year 1	113	98
Term Loans by Vintage Year, Year 2	78	157
Term Loans by Vintage Year, Year 3	92	57
Term Loans by Vintage Year, Year 4	52	65
Term Loans by Vintage Year, Year 5	54	117
Prior	494	468
Total Term Loans	883	962
Revolving Loans	342	363
Revolving Loans Converted to Term	4	4
Total	1,229	1,329
30-59 days | Retail banking | Consumer Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
Term Loans by Vintage Year, Year 1	0	1
Term Loans by Vintage Year, Year 2	0	0
Term Loans by Vintage Year, Year 3	0	1
Term Loans by Vintage Year, Year 4	0	1
Term Loans by Vintage Year, Year 5	0	0
Prior	2	1
Total Term Loans	2	4
Revolving Loans	11	11
Revolving Loans Converted to Term	0	0
Total	13	15
60-89 days | Retail banking | Consumer Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
Term Loans by Vintage Year, Year 1	0	0
Term Loans by Vintage Year, Year 2	0	0
Term Loans by Vintage Year, Year 3	0	0
Term Loans by Vintage Year, Year 4	0	0
Term Loans by Vintage Year, Year 5	0	0
Prior	0	1
Total Term Loans	0	1
Revolving Loans	2	2
Revolving Loans Converted to Term	0	0
Total	2	3
Greater than 90 days | Retail banking | Consumer Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
Term Loans by Vintage Year, Year 1	0	0
Term Loans by Vintage Year, Year 2	0	0
Term Loans by Vintage Year, Year 3	0	0
Term Loans by Vintage Year, Year 4	0	0
Term Loans by Vintage Year, Year 5	1	0
Prior	7	8
Total Term Loans	8	8
Revolving Loans	1	6
Revolving Loans Converted to Term	0	1
Total	9	15
Greater than 660 | Auto | Consumer Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
Term Loans by Vintage Year, Year 1	12,790	12,219
Term Loans by Vintage Year, Year 2	9,219	12,593
Term Loans by Vintage Year, Year 3	9,214	9,505
Term Loans by Vintage Year, Year 4	6,501	3,124
Term Loans by Vintage Year, Year 5	1,832	1,213
Prior	578	309
Total Term Loans	40,134	38,963
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	40,134	38,963
621-660 | Auto | Consumer Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
Term Loans by Vintage Year, Year 1	4,316	4,863
Term Loans by Vintage Year, Year 2	3,827	4,432
Term Loans by Vintage Year, Year 3	3,262	3,346
Term Loans by Vintage Year, Year 4	2,291	1,337
Term Loans by Vintage Year, Year 5	811	592
Prior	330	192
Total Term Loans	14,837	14,762
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	14,837	14,762
620 or below | Auto | Consumer Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
Term Loans by Vintage Year, Year 1	6,045	6,647
Term Loans by Vintage Year, Year 2	5,331	5,539
Term Loans by Vintage Year, Year 3	4,071	4,283
Term Loans by Vintage Year, Year 4	2,935	2,349
Term Loans by Vintage Year, Year 5	1,453	1,131
Prior	699	401
Total Term Loans	20,534	20,350
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	$ 20,534	$ 20,350

XML

Loans - Commercial Banking: Risk Profile by Internal Risk Rating (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held for investment	$ 320,243	$ 320,472
Commercial Banking:
Financing Receivable, Allowance for Credit Loss [Line Items]
Term Loans by Vintage Year, Year 1	5,512	10,556
Term Loans by Vintage Year, Year 2	8,643	18,879
Term Loans by Vintage Year, Year 3	16,288	11,282
Term Loans by Vintage Year, Year 4	9,298	5,124
Term Loans by Vintage Year, Year 5	4,245	5,444
Prior	13,973	10,271
Total Term Loans	57,959	61,556
Revolving Loans	28,584	28,740
Revolving Loans Converted to Term	291	192
Total loans held for investment	86,834	90,488
Commercial Banking: | Commercial and multifamily real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Term Loans by Vintage Year, Year 1	1,338	3,281
Term Loans by Vintage Year, Year 2	2,391	6,185
Term Loans by Vintage Year, Year 3	5,182	3,603
Term Loans by Vintage Year, Year 4	2,700	1,303
Term Loans by Vintage Year, Year 5	1,176	2,614
Prior	6,485	4,737
Total Term Loans	19,272	21,723
Revolving Loans	12,780	12,698
Revolving Loans Converted to Term	147	25
Total loans held for investment	32,199	34,446
Commercial Banking: | Commercial and multifamily real estate | Noncriticized
Financing Receivable, Allowance for Credit Loss [Line Items]
Term Loans by Vintage Year, Year 1	1,262	3,068
Term Loans by Vintage Year, Year 2	2,300	4,665
Term Loans by Vintage Year, Year 3	3,643	2,773
Term Loans by Vintage Year, Year 4	2,265	1,019
Term Loans by Vintage Year, Year 5	965	2,104
Prior	5,096	3,670
Total Term Loans	15,531	17,299
Revolving Loans	12,591	12,565
Revolving Loans Converted to Term	50	25
Total loans held for investment	28,172	29,889
Commercial Banking: | Commercial and multifamily real estate | Criticized | Criticized performing
Financing Receivable, Allowance for Credit Loss [Line Items]
Term Loans by Vintage Year, Year 1	53	148
Term Loans by Vintage Year, Year 2	91	1,494
Term Loans by Vintage Year, Year 3	1,525	706
Term Loans by Vintage Year, Year 4	294	284
Term Loans by Vintage Year, Year 5	128	463
Prior	1,048	904
Total Term Loans	3,139	3,999
Revolving Loans	161	133
Revolving Loans Converted to Term	97	0
Total loans held for investment	3,397	4,132
Commercial Banking: | Commercial and multifamily real estate | Criticized | Criticized nonperforming
Financing Receivable, Allowance for Credit Loss [Line Items]
Term Loans by Vintage Year, Year 1	23	65
Term Loans by Vintage Year, Year 2	0	26
Term Loans by Vintage Year, Year 3	14	124
Term Loans by Vintage Year, Year 4	141	0
Term Loans by Vintage Year, Year 5	83	47
Prior	341	163
Total Term Loans	602	425
Revolving Loans	28	0
Revolving Loans Converted to Term	0	0
Total loans held for investment	630	425
Commercial Banking: | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Term Loans by Vintage Year, Year 1	4,174	7,275
Term Loans by Vintage Year, Year 2	6,252	12,694
Term Loans by Vintage Year, Year 3	11,106	7,679
Term Loans by Vintage Year, Year 4	6,598	3,821
Term Loans by Vintage Year, Year 5	3,069	2,830
Prior	7,488	5,534
Total Term Loans	38,687	39,833
Revolving Loans	15,804	16,042
Revolving Loans Converted to Term	144	167
Total loans held for investment	54,635	56,042
Commercial Banking: | Commercial and industrial | Noncriticized
Financing Receivable, Allowance for Credit Loss [Line Items]
Term Loans by Vintage Year, Year 1	4,106	6,909
Term Loans by Vintage Year, Year 2	6,046	11,935
Term Loans by Vintage Year, Year 3	10,197	6,994
Term Loans by Vintage Year, Year 4	5,770	3,566
Term Loans by Vintage Year, Year 5	2,762	2,359
Prior	7,001	5,117
Total Term Loans	35,882	36,880
Revolving Loans	14,637	14,822
Revolving Loans Converted to Term	144	167
Total loans held for investment	50,663	51,869
Commercial Banking: | Commercial and industrial | Criticized | Criticized performing
Financing Receivable, Allowance for Credit Loss [Line Items]
Term Loans by Vintage Year, Year 1	6	353
Term Loans by Vintage Year, Year 2	193	706
Term Loans by Vintage Year, Year 3	781	655
Term Loans by Vintage Year, Year 4	811	237
Term Loans by Vintage Year, Year 5	118	348
Prior	367	349
Total Term Loans	2,276	2,648
Revolving Loans	978	1,189
Revolving Loans Converted to Term	0	0
Total loans held for investment	3,254	3,837
Commercial Banking: | Commercial and industrial | Criticized | Criticized nonperforming
Financing Receivable, Allowance for Credit Loss [Line Items]
Term Loans by Vintage Year, Year 1	62	13
Term Loans by Vintage Year, Year 2	13	53
Term Loans by Vintage Year, Year 3	128	30
Term Loans by Vintage Year, Year 4	17	18
Term Loans by Vintage Year, Year 5	189	123
Prior	120	68
Total Term Loans	529	305
Revolving Loans	189	31
Revolving Loans Converted to Term	0	0
Total loans held for investment	$ 718	$ 336

XML

Loans - Financing Receivable, Modified - Modification to Borrowers (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 1,300	$ 887	$ 2,725	$ 2,053
% of total class of receivables	0.41%	0.28%	0.85%	0.65%
Interest rate reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 242	$ 242	$ 594	$ 513
Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	731	291	1,229	753
Principal balance reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	9	8	34	17
Principal balance reduction and term extension
Financing Receivable, Past Due [Line Items]
Total loans modified				15
Interest Rate Reduction and Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	264	281	588	540
Other
Financing Receivable, Past Due [Line Items]
Total loans modified	54	65	280	215
Credit Card:
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 238	$ 249	$ 593	$ 523
% of total class of receivables	0.15%	0.17%	0.38%	0.36%
Credit Card: | Interest rate reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 233	$ 242	$ 585	$ 513
Credit Card: | Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	0	0	0	0
Credit Card: | Principal balance reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	0	0	0	0
Credit Card: | Principal balance reduction and term extension
Financing Receivable, Past Due [Line Items]
Total loans modified				0
Credit Card: | Interest Rate Reduction and Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	5	7	8	10
Credit Card: | Other
Financing Receivable, Past Due [Line Items]
Total loans modified	0	0	0	0
Credit Card: | Domestic Card
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 178	$ 207	$ 480	$ 447
% of total class of receivables	0.12%	0.15%	0.32%	0.32%
Credit Card: | Domestic Card | Interest rate reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 173	$ 200	$ 472	$ 437
Weighted-average interest rate reduction	20.49%	19.40%	20.19%	19.19%
Credit Card: | Domestic Card | Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 0	$ 0	$ 0	$ 0
Payment delay duration (in months)	12 months	12 months	12 months	12 months
Credit Card: | Domestic Card | Principal balance reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 0	$ 0	$ 0	$ 0
Principal balance reduction	0	0	0	0
Credit Card: | Domestic Card | Principal balance reduction and term extension
Financing Receivable, Past Due [Line Items]
Total loans modified				0
Credit Card: | Domestic Card | Interest Rate Reduction and Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	5	7	8	10
Credit Card: | Domestic Card | Other
Financing Receivable, Past Due [Line Items]
Total loans modified	0	0	0	0
Credit Card: | International card businesses
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 60	$ 42	$ 113	$ 76
% of total class of receivables	0.83%	0.65%	1.56%	1.17%
Credit Card: | International card businesses | Interest rate reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 60	$ 42	$ 113	$ 76
Weighted-average interest rate reduction	27.01%	27.41%	26.76%	27.08%
Credit Card: | International card businesses | Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 0	$ 0	$ 0	$ 0
Principal balance reduction	0	0	0	0
Credit Card: | International card businesses | Principal balance reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	0	0	0	0
Principal balance reduction	0	0	0	0
Credit Card: | International card businesses | Principal balance reduction and term extension
Financing Receivable, Past Due [Line Items]
Total loans modified				0
Credit Card: | International card businesses | Interest Rate Reduction and Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	0	0	0	0
Credit Card: | International card businesses | Other
Financing Receivable, Past Due [Line Items]
Total loans modified	0	0	0	0
Consumer Banking:
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 282	$ 281	$ 617	$ 610
% of total class of receivables	0.37%	0.36%	0.80%	0.79%
Consumer Banking: | Interest rate reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 0	$ 0	$ 0	$ 0
Consumer Banking: | Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	13	16	21	79
Consumer Banking: | Principal balance reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	9	8	19	17
Consumer Banking: | Principal balance reduction and term extension
Financing Receivable, Past Due [Line Items]
Total loans modified				0
Consumer Banking: | Interest Rate Reduction and Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	258	248	573	504
Consumer Banking: | Other
Financing Receivable, Past Due [Line Items]
Total loans modified	2	9	4	10
Consumer Banking: | Auto
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 279	$ 272	$ 612	$ 600
% of total class of receivables	0.37%	0.36%	0.81%	0.79%
Consumer Banking: | Auto | Interest rate reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 0	$ 0	$ 0	$ 0
Weighted-average interest rate reduction	8.83%	8.67%	8.78%	8.74%
Consumer Banking: | Auto | Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 10	$ 14	$ 17	$ 76
Payment delay duration (in months)	6 months	6 months	6 months	6 months
Consumer Banking: | Auto | Principal balance reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 9	$ 8	$ 19	$ 17
Principal balance reduction	0	0	0	1
Consumer Banking: | Auto | Principal balance reduction and term extension
Financing Receivable, Past Due [Line Items]
Total loans modified				0
Consumer Banking: | Auto | Interest Rate Reduction and Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	258	248	573	504
Consumer Banking: | Auto | Other
Financing Receivable, Past Due [Line Items]
Total loans modified	2	2	3	3
Consumer Banking: | Retail banking
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 3	$ 9	$ 5	$ 10
% of total class of receivables	0.22%	0.62%	0.42%	0.75%
Consumer Banking: | Retail banking | Interest rate reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 0	$ 0	$ 0	$ 0
Weighted-average interest rate reduction	0.00%	0.00%	3.48%	2.00%
Consumer Banking: | Retail banking | Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 3	$ 2	$ 4	$ 3
Payment delay duration (in months)	25 months	8 months	4 months	13 months
Consumer Banking: | Retail banking | Principal balance reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 0	$ 0	$ 0	$ 0
Principal balance reduction	0	0	0	0
Consumer Banking: | Retail banking | Principal balance reduction and term extension
Financing Receivable, Past Due [Line Items]
Total loans modified				0
Consumer Banking: | Retail banking | Interest Rate Reduction and Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	0	0	0	0
Consumer Banking: | Retail banking | Other
Financing Receivable, Past Due [Line Items]
Total loans modified	0	7	1	7
Commercial Banking:
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 780	$ 357	$ 1,515	$ 920
% of total class of receivables	0.90%	0.39%	1.74%	1.01%
Commercial Banking: | Interest rate reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 9	$ 0	$ 9	$ 0
Commercial Banking: | Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	718	275	1,208	674
Commercial Banking: | Principal balance reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	0	0	15	0
Commercial Banking: | Principal balance reduction and term extension
Financing Receivable, Past Due [Line Items]
Total loans modified				15
Commercial Banking: | Interest Rate Reduction and Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	1	26	7	26
Commercial Banking: | Other
Financing Receivable, Past Due [Line Items]
Total loans modified	52	56	276	205
Commercial Banking: | Commercial and multifamily real estate
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 307	$ 128	$ 672	$ 381
% of total class of receivables	0.96%	0.36%	2.09%	1.07%
Commercial Banking: | Commercial and multifamily real estate | Interest rate reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 0	$ 0	$ 0	$ 0
Weighted-average interest rate reduction	0.00%	0.00%	0.79%	0.00%
Commercial Banking: | Commercial and multifamily real estate | Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 286	$ 128	$ 513	$ 327
Payment delay duration (in months)	18 months	11 months	11 months	15 months
Commercial Banking: | Commercial and multifamily real estate | Principal balance reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 0	$ 0	$ 0	$ 0
Principal balance reduction	0	0	0	20
Commercial Banking: | Commercial and multifamily real estate | Principal balance reduction and term extension
Financing Receivable, Past Due [Line Items]
Total loans modified				0
Commercial Banking: | Commercial and multifamily real estate | Interest Rate Reduction and Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	0	0	0	0
Commercial Banking: | Commercial and multifamily real estate | Other
Financing Receivable, Past Due [Line Items]
Total loans modified	21	0	159	54
Commercial Banking: | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 473	$ 229	$ 843	$ 539
% of total class of receivables	0.87%	0.41%	1.54%	0.97%
Commercial Banking: | Commercial and industrial | Interest rate reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 9	$ 0	$ 9	$ 0
Weighted-average interest rate reduction	2.14%	0.25%	1.90%	0.25%
Commercial Banking: | Commercial and industrial | Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 432	$ 147	$ 695	$ 347
Payment delay duration (in months)	18 months	17 months	16 months	9 months
Commercial Banking: | Commercial and industrial | Principal balance reduction
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 0	$ 0	$ 15	$ 0
Principal balance reduction	0	0	15	3
Commercial Banking: | Commercial and industrial | Principal balance reduction and term extension
Financing Receivable, Past Due [Line Items]
Total loans modified				15
Commercial Banking: | Commercial and industrial | Interest Rate Reduction and Term Extension
Financing Receivable, Past Due [Line Items]
Total loans modified	1	26	7	26
Commercial Banking: | Commercial and industrial | Other
Financing Receivable, Past Due [Line Items]
Total loans modified	$ 31	$ 56	$ 117	$ 151

XML

Loans - FDM Disclosure - Modification to Borrowers (Details) - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	$ 3,110	$ 2,053
Commitments to lend on loans modified in TDRs	263	75
Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	2,475	1,520
30-59 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	258	156
60-89 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	131	94
Greater than 90 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	246	283
Total Delinquent Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	635	533
Credit Card:
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	744	523
Credit Card: | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	491	318
Credit Card: | 30-59 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	72	73
Credit Card: | 60-89 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	56	48
Credit Card: | Greater than 90 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	125	84
Credit Card: | Total Delinquent Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	253	205
Credit Card: | Domestic Card
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	616	447
Credit Card: | Domestic Card | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	423	283
Credit Card: | Domestic Card | 30-59 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	60	65
Credit Card: | Domestic Card | 60-89 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	45	40
Credit Card: | Domestic Card | Greater than 90 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	88	59
Credit Card: | Domestic Card | Total Delinquent Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	193	164
Credit Card: | International card businesses
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	128	76
Credit Card: | International card businesses | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	68	35
Credit Card: | International card businesses | 30-59 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	12	8
Credit Card: | International card businesses | 60-89 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	11	8
Credit Card: | International card businesses | Greater than 90 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	37	25
Credit Card: | International card businesses | Total Delinquent Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	60	41
Consumer Banking:
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	781	610
Consumer Banking: | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	570	467
Consumer Banking: | 30-59 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	112	79
Consumer Banking: | 60-89 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	71	46
Consumer Banking: | Greater than 90 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	28	18
Consumer Banking: | Total Delinquent Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	211	143
Consumer Banking: | Auto
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	771	600
Consumer Banking: | Auto | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	560	457
Consumer Banking: | Auto | 30-59 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	112	79
Consumer Banking: | Auto | 60-89 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	71	46
Consumer Banking: | Auto | Greater than 90 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	28	18
Consumer Banking: | Auto | Total Delinquent Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	211	143
Consumer Banking: | Retail banking
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	10	10
Consumer Banking: | Retail banking | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	10	10
Consumer Banking: | Retail banking | 30-59 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Consumer Banking: | Retail banking | 60-89 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Consumer Banking: | Retail banking | Greater than 90 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Consumer Banking: | Retail banking | Total Delinquent Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial Banking:
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	1,585	920
Commercial Banking: | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	1,414	735
Commercial Banking: | 30-59 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	74	4
Commercial Banking: | 60-89 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	4	0
Commercial Banking: | Greater than 90 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	93	181
Commercial Banking: | Total Delinquent Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	171	185
Commercial Banking: | Commercial and multifamily real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	674	381
Commercial Banking: | Commercial and multifamily real estate | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	646	318
Commercial Banking: | Commercial and multifamily real estate | 30-59 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial Banking: | Commercial and multifamily real estate | 60-89 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial Banking: | Commercial and multifamily real estate | Greater than 90 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	28	63
Commercial Banking: | Commercial and multifamily real estate | Total Delinquent Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	28	63
Commercial Banking: | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	911	539
Commercial Banking: | Commercial and industrial | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	768	417
Commercial Banking: | Commercial and industrial | 30-59 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	74	4
Commercial Banking: | Commercial and industrial | 60-89 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	4	0
Commercial Banking: | Commercial and industrial | Greater than 90 days
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	65	118
Commercial Banking: | Commercial and industrial | Total Delinquent Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	$ 143	$ 122

XML

Loans - Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods (Details) - Entity Loan Modification Program - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	$ 315	$ 204	$ 1,084	$ 283
Interest rate reduction
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	73	23	235	48
Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	104	104	235	106
Interest Rate Reduction and Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	110	77	331	129
Other Modifications
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	28		283
Credit Card:
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	73	23	237	48
Credit Card: | Interest rate reduction
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	73	23	235	48
Credit Card: | Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Credit Card: | Interest Rate Reduction and Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	2	0
Credit Card: | Other Modifications
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0		0
Credit Card: | Domestic credit card:
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	52	17	181	39
Credit Card: | Domestic credit card: | Interest rate reduction
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	52	17	179	39
Credit Card: | Domestic credit card: | Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Credit Card: | Domestic credit card: | Interest Rate Reduction and Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	2	0
Credit Card: | Domestic credit card: | Other Modifications
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0		0
Credit Card: | International card businesses:
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	21	6	56	9
Credit Card: | International card businesses: | Interest rate reduction
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	21	6	56	9
Credit Card: | International card businesses: | Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Credit Card: | International card businesses: | Interest Rate Reduction and Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Credit Card: | International card businesses: | Other Modifications
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0		0
Consumer Banking:
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	111	84	336	138
Consumer Banking: | Auto
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	111	84	335	138
Consumer Banking: | Retail banking
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0		1
Consumer Banking: | Interest rate reduction
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Consumer Banking: | Interest rate reduction | Auto
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Consumer Banking: | Interest rate reduction | Retail banking
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0		0
Consumer Banking: | Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	1	7	7	9
Consumer Banking: | Term Extension | Auto
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	1	7	6	9
Consumer Banking: | Term Extension | Retail banking
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0		1
Consumer Banking: | Interest Rate Reduction and Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	110	77	329	129
Consumer Banking: | Interest Rate Reduction and Term Extension | Auto
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	110	77	329	129
Consumer Banking: | Interest Rate Reduction and Term Extension | Retail banking
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0		0
Consumer Banking: | Other Modifications
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0		0
Consumer Banking: | Other Modifications | Auto
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0		0
Consumer Banking: | Other Modifications | Retail banking
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0		0
Commercial Banking:
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	131		511
Commercial Banking: | Commercial and multifamily real estate
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	131		131
Commercial Banking: | Commercial and industrial
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0		380
Commercial Banking: | Interest rate reduction
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Commercial Banking: | Interest rate reduction | Commercial and multifamily real estate
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Commercial Banking: | Interest rate reduction | Commercial and industrial
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Commercial Banking: | Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	103	97	228	97
Commercial Banking: | Term Extension | Commercial and multifamily real estate
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	103	46	103	46
Commercial Banking: | Term Extension | Commercial and industrial
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	51	125	51
Commercial Banking: | Interest Rate Reduction and Term Extension
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Commercial Banking: | Interest Rate Reduction and Term Extension | Commercial and multifamily real estate
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Commercial Banking: | Interest Rate Reduction and Term Extension | Commercial and industrial
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	0	0	0	0
Commercial Banking: | Other Modifications
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	28	97	283	97
Commercial Banking: | Other Modifications | Commercial and multifamily real estate
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	28	46	28	46
Commercial Banking: | Other Modifications | Commercial and industrial
Financing Receivable, Modified, Subsequent Default [Line Items]
Amount	$ 0	$ 51	$ 255	$ 51

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Allowance for Credit Losses and Reserve for Unfunded Lending Commitments - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss	$ 16,534		$ 15,296
Allowance for credit losses
Accounts, Notes, Loans and Financing Receivable [Line Items]
Increase (decrease) in allowance for credit loss	1,200
Allowance for credit loss	$ 16,534	$ 16,649	$ 15,296	$ 14,955	$ 14,646	$ 13,240

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Allowance for Credit Losses and Reserve for Unfunded Lending Commitments - Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period				$ 15,296
Provision for credit losses	$ 2,482		$ 2,284	9,074	$ 7,569
Balance at the end of the period	16,534			16,534
Translation adjustment and purchase credit deteriorated loans				0	32
Allowance for credit losses
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period	16,649		14,646	15,296	13,240
Charge-offs	(3,427)		(2,581)	(10,061)	(7,596)
Recoveries	823		582	2,197	1,715
Net charge-offs	(2,604)		(1,999)	(7,864)	(5,881)
Provision for credit losses	2,470		2,321	9,091	7,626
Allowance build (release) for credit losses	(134)		322	1,227	1,745
Other changes	19		(13)	11	33
Balance at the end of the period	16,534	$ 16,649	14,955	16,534	14,955
Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period					(63)
Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period					13,177
Reserve for unfunded lending commitments
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period	129		197	158	218
Provision for credit losses	13		(39)	(16)	(60)
Balance at the end of the period	142	129	158	142	158
Combined allowance and reserve
Allowance for Credit Losses [Roll Forward]
Balance at the end of the period	16,676		15,113	16,676	15,113
Credit Card: | Allowance for credit losses
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period	13,040		10,976	11,709	9,545
Charge-offs	(2,632)		(1,925)	(7,892)	(5,481)
Recoveries	478		333	1,273	992
Net charge-offs	(2,154)		(1,592)	(6,619)	(4,489)
Provision for credit losses	2,084		1,953	7,888	6,298
Allowance build (release) for credit losses	(70)		361	1,269	1,809
Other changes	19		(13)	11	33
Balance at the end of the period	12,989	13,040	11,324	12,989	11,324
Credit Card: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period					(63)
Credit Card: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period					9,482
Credit Card: | Reserve for unfunded lending commitments
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period	0		0	0	0
Provision for credit losses	0		0	0	0
Balance at the end of the period	0	0	0	0	0
Credit Card: | Combined allowance and reserve
Allowance for Credit Losses [Roll Forward]
Balance at the end of the period	12,989		11,324	12,989	11,324
Consumer Banking: | Allowance for credit losses
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period	2,065		2,185	2,042	2,237
Charge-offs	(707)		(596)	(2,003)	(1,653)
Recoveries	306		247	869	718
Net charge-offs	(401)		(349)	(1,134)	(935)
Provision for credit losses	351		213	1,107	747
Allowance build (release) for credit losses	(50)		(136)	(27)	(188)
Other changes	0		0	0	0
Balance at the end of the period	2,015	2,065	2,049	2,015	2,049
Consumer Banking: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period					0
Consumer Banking: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period					2,237
Consumer Banking: | Reserve for unfunded lending commitments
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period	0		0	0	0
Provision for credit losses	0		0	0	0
Balance at the end of the period	0	0	0	0	0
Consumer Banking: | Combined allowance and reserve
Allowance for Credit Losses [Roll Forward]
Balance at the end of the period	2,015		2,049	2,015	2,049
Commercial Banking: | Allowance for credit losses
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period	1,544		1,485	1,545	1,458
Charge-offs	(88)		(60)	(166)	(462)
Recoveries	39		2	55	5
Net charge-offs	(49)		(58)	(111)	(457)
Provision for credit losses	35		155	96	581
Allowance build (release) for credit losses	(14)		97	(15)	124
Other changes	0		0	0	0
Balance at the end of the period	1,530	1,544	1,582	1,530	1,582
Commercial Banking: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjustment
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period					0
Commercial Banking: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period					1,458
Commercial Banking: | Reserve for unfunded lending commitments
Allowance for Credit Losses [Roll Forward]
Balance at beginning of the period	129		197	158	218
Provision for credit losses	13		(39)	(16)	(60)
Balance at the end of the period	142	129	158	142	158
Commercial Banking: | Combined allowance and reserve
Allowance for Credit Losses [Roll Forward]
Balance at the end of the period	$ 1,672		$ 1,740	$ 1,672	$ 1,740
Domestic Credit Card Portfolio Segment
Allowance for Credit Losses [Roll Forward]
Allowance build (release) for credit losses		$ 826

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Allowance for Credit Losses and Reserve for Unfunded Lending Commitments - Charge-Offs (Details) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2024	$ 71
2023	474
2022	681
2021	493
2020	200
Prior	182
Total Term Loans	2,101
Revolving Loans	7,865
Revolving Loans Converted to Term	95
Total	10,061
Credit Card:
Financing Receivable, Credit Quality Indicator [Line Items]
Revolving Loans	7,798
Revolving Loans Converted to Term	94
Total	7,892
Credit Card: | Domestic Card
Financing Receivable, Credit Quality Indicator [Line Items]
Revolving Loans	7,425
Revolving Loans Converted to Term	84
Total	7,509
Credit Card: | International card businesses
Financing Receivable, Credit Quality Indicator [Line Items]
Revolving Loans	373
Revolving Loans Converted to Term	10
Total	383
Consumer Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
2024	71
2023	474
2022	630
2021	457
2020	184
Prior	129
Total Term Loans	1,945
Revolving Loans	57
Revolving Loans Converted to Term	1
Total	2,003
Consumer Banking: | Auto
Financing Receivable, Credit Quality Indicator [Line Items]
2024	70
2023	474
2022	630
2021	457
2020	184
Prior	126
Total Term Loans	1,941
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	1,941
Consumer Banking: | Retail banking
Financing Receivable, Credit Quality Indicator [Line Items]
2024	1
2023	0
2022	0
2021	0
2020	0
Prior	3
Total Term Loans	4
Revolving Loans	57
Revolving Loans Converted to Term	1
Total	62
Commercial Banking:
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0
2023	0
2022	51
2021	36
2020	16
Prior	53
Total Term Loans	156
Revolving Loans	10
Revolving Loans Converted to Term	0
Total	166
Commercial Banking: | Commercial and multifamily real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0
2023	0
2022	5
2021	31
2020	0
Prior	49
Total Term Loans	85
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	85
Commercial Banking: | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0
2023	0
2022	46
2021	5
2020	16
Prior	4
Total Term Loans	71
Revolving Loans	10
Revolving Loans Converted to Term	0
Total	$ 81

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Allowance for Credit Losses and Reserve for Unfunded Lending Commitments - Summary of Loss Sharing Arrangements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Change in estimated partner reimbursements that (increased) decreased provision for credit losses	$ 2,482	$ 2,284	$ 9,074	$ 7,569
Loss sharing agreements
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Estimated reimbursements from partners, beginning of period	1,210	1,908	2,014	1,558
Amounts due from partners for charged off loans	(157)	(249)	(734)	(681)
Change in estimated partner reimbursements that (increased) decreased provision for credit losses	102	319	(125)	1,101
Estimated reimbursements from partners, end of period	$ 1,155	$ 1,978	$ 1,155	$ 1,978

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Variable Interest Entities and Securitizations - Carrying Amount of Consolidated and Unconsolidated VIEs (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Variable Interest Entity [Line Items]
Carrying Amount of Assets	$ 486,433	$ 478,464
Carrying Amount of Liabilities	423,508	420,375
Maximum Exposure to Loss	5,854	6,175
Consolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	30,466	33,288
Carrying Amount of Liabilities	16,368	18,746
Unconsolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	5,854	6,175
Carrying Amount of Liabilities	1,898	2,085
Affordable housing entities
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	5,469	5,726
VIE, nonconsolidated, carrying amount of assets included in certain investment structures	2,600	2,600
VIE, nonconsolidated, carrying amount of liabilities included in certain investment structures	999	989
Affordable housing entities | Consolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	354	297
Carrying Amount of Liabilities	75	23
Affordable housing entities | Unconsolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	5,469	5,726
Carrying Amount of Liabilities	1,890	2,085
Entities that provide capital to low-income and rural communities
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	0	0
Entities that provide capital to low-income and rural communities | Consolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	2,639	2,498
Carrying Amount of Liabilities	10	10
Entities that provide capital to low-income and rural communities | Unconsolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	0	0
Carrying Amount of Liabilities	0	0
Other
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	385	449
Other | Consolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	0	0
Carrying Amount of Liabilities	0	0
Other | Unconsolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	385	449
Carrying Amount of Liabilities	8	0
Total other VIEs
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	5,854	6,175
Total other VIEs | Consolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	2,993	2,795
Carrying Amount of Liabilities	85	33
Total other VIEs | Unconsolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	5,854	6,175
Carrying Amount of Liabilities	1,898	2,085
Credit card loan securitizations
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	0	0
Credit card loan securitizations | Consolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	24,000	25,474
Carrying Amount of Liabilities	13,495	14,692
Credit card loan securitizations | Unconsolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	0	0
Carrying Amount of Liabilities	0	0
Auto loan securitizations
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	0	0
Auto loan securitizations | Consolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	3,473	5,019
Carrying Amount of Liabilities	2,788	4,021
Auto loan securitizations | Unconsolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	0	0
Carrying Amount of Liabilities	0	0
Total securitization-related VIEs
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	0	0
Total securitization-related VIEs | Consolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	27,473	30,493
Carrying Amount of Liabilities	16,283	18,713
Total securitization-related VIEs | Unconsolidated
Variable Interest Entity [Line Items]
Carrying Amount of Assets	0	0
Carrying Amount of Liabilities	$ 0	$ 0

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Variable Interest Entities and Securitizations - Continuing Involvement in Securitization Related VIEs (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Credit Card
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Securities held by third-party investors	$ 13,098	$ 14,029
Receivables in the trusts	24,867	26,404
Cash balance of spread or reserve accounts	0	0
Auto
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Securities held by third-party investors	2,783	4,014
Receivables in the trusts	3,315	4,839
Cash balance of spread or reserve accounts	$ 19	$ 19

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Variable Interest Entities and Securitizations - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Variable Interest Entity [Line Items]
Amortization method qualified affordable housing investments, amortization	$ 527	$ 522
Affordable housing tax credits	671	$ 652
Amortization method qualified affordable housing investments	5,300		$ 5,500
Qualified affordable housing investments, commitment	2,100		2,300
Assets	486,433		478,464
VIE, reporting entity involvement, maximum loss exposure	5,854		6,175
Unconsolidated
Variable Interest Entity [Line Items]
Assets	5,854		6,175
Consolidated
Variable Interest Entity [Line Items]
Assets	30,466		33,288
Affordable housing entities
Variable Interest Entity [Line Items]
VIE, reporting entity involvement, maximum loss exposure	5,469		5,726
Affordable housing entities | Unconsolidated
Variable Interest Entity [Line Items]
Assets	5,469		5,726
Total assets of the unconsolidated VIE investment funds	18,700		18,600
Affordable housing entities | Consolidated
Variable Interest Entity [Line Items]
Assets	354		297
Entities that provide capital to low-income and rural communities
Variable Interest Entity [Line Items]
VIE, reporting entity involvement, maximum loss exposure	0		0
Entities that provide capital to low-income and rural communities | Unconsolidated
Variable Interest Entity [Line Items]
Assets	0		0
Entities that provide capital to low-income and rural communities | Consolidated
Variable Interest Entity [Line Items]
Assets	2,639		2,498
Other
Variable Interest Entity [Line Items]
VIE, reporting entity involvement, maximum loss exposure	385		449
Other | Unconsolidated
Variable Interest Entity [Line Items]
Assets	385		449
Other | Consolidated
Variable Interest Entity [Line Items]
Assets	$ 0		$ 0

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Goodwill and Other Intangible Assets - Components (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Goodwill
Carrying Amount of Assets	$ 15,083	$ 15,065
Net Carrying Amount	15,083	15,065
Other intangible assets:
Carrying Amount of Assets	504	540
Accumulated Amortization	(251)	(230)
Net Carrying Amount	253	310
Total goodwill and other intangible assets
Carrying Amount of Assets	15,587	15,605
Net Carrying Amount	15,336	15,375
Commercial MSRs
Carrying Amount of Assets	658	653
Accumulated Amortization	(301)	(263)
Net Carrying Amount	357	390
Purchased credit card relationship (“PCCR”) intangibles
Other intangible assets:
Carrying Amount of Assets	369	369
Accumulated Amortization	(147)	(96)
Net Carrying Amount	222	273
Other
Other intangible assets:
Carrying Amount of Assets	135	171
Accumulated Amortization	(104)	(134)
Net Carrying Amount	$ 31	$ 37

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Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangibles	$ 20	$ 24	$ 58	$ 60

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Goodwill and Other Intangible Assets - Goodwill Business Segments (Details) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 15,065
Other adjustments	18
Goodwill, ending balance	15,083
Credit Card
Goodwill [Roll Forward]
Goodwill, beginning balance	5,366
Other adjustments	18
Goodwill, ending balance	5,384
Consumer Banking
Goodwill [Roll Forward]
Goodwill, beginning balance	4,645
Other adjustments	0
Goodwill, ending balance	4,645
Commercial Banking
Goodwill [Roll Forward]
Goodwill, beginning balance	5,054
Other adjustments	0
Goodwill, ending balance	$ 5,054

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Deposits and Borrowings - Deposits and Short-term Borrowings (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Deposits:
Non-interest-bearing deposits	$ 26,378	$ 28,024
Interest-bearing deposits	327,253	320,389
Total deposits	353,631	348,413	$ 346,011
Short-term borrowings:
Total short-term borrowings	520	538
Federal funds purchased and securities loaned or sold under agreements to repurchase
Short-term borrowings:
Total short-term borrowings	$ 520	$ 538

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Deposits and Borrowings - Long-Term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total long-term debt	$ 48,816	$ 49,318
Total short-term borrowings and long-term debt	49,336	49,856
Time deposits, at or above FDIC insurance limit	14,700	15,800
Deposit liability, uninsured	9,700	9,000
Senior and subordinated notes	32,911	31,248
Euro
Debt Instrument [Line Items]
Senior and subordinated notes	$ 506	1,300
Securitized debt obligations
Debt Instrument [Line Items]
Weighted-Average Interest Rate	3.13%
Carrying value	$ 15,881	18,043
Total senior and subordinated notes
Debt Instrument [Line Items]
Carrying value	$ 32,911	31,248
Senior notes | Total unsecured senior debt
Debt Instrument [Line Items]
Weighted-Average Interest Rate	4.76%
Carrying value	$ 29,102	27,517
Senior notes | Fixed unsecured senior debt
Debt Instrument [Line Items]
Weighted-Average Interest Rate	4.76%
Carrying value	$ 29,102	27,168
Senior notes | Floating unsecured senior debt
Debt Instrument [Line Items]
Weighted-Average Interest Rate	0.00%
Carrying value	$ 0	349
Subordinated notes | Fixed unsecured subordinated debt
Debt Instrument [Line Items]
Weighted-Average Interest Rate	3.57%
Carrying value	$ 3,809	3,731
Other long-term borrowings
Debt Instrument [Line Items]
Weighted-Average Interest Rate	6.59%
Carrying value	$ 24	$ 27
Minimum | Securitized debt obligations
Debt Instrument [Line Items]
Stated Interest Rates	0.77%
Minimum | Senior notes | Fixed unsecured senior debt
Debt Instrument [Line Items]
Stated Interest Rates	1.65%
Minimum | Subordinated notes | Fixed unsecured subordinated debt
Debt Instrument [Line Items]
Stated Interest Rates	2.36%
Minimum | Other long-term borrowings
Debt Instrument [Line Items]
Stated Interest Rates	1.20%
Maximum | Securitized debt obligations
Debt Instrument [Line Items]
Stated Interest Rates	6.11%
Maximum | Senior notes | Fixed unsecured senior debt
Debt Instrument [Line Items]
Stated Interest Rates	7.62%
Maximum | Subordinated notes | Fixed unsecured subordinated debt
Debt Instrument [Line Items]
Stated Interest Rates	4.20%
Maximum | Other long-term borrowings
Debt Instrument [Line Items]
Stated Interest Rates	9.91%

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Derivative Instruments and Hedging Activities - Derivative Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	$ 314,074	$ 294,039
Derivative assets, gross amount	2,408	2,675
Derivative liabilities, gross amount	2,657	2,932
Derivative Asset, netting adjustments	(725)	(1,005)
Derivative Liability, netting adjustments	(622)	(597)
Net Amounts as Recognized	1,683	1,670
Net Amounts as Recognized	2,035	2,335
Net valuation allowance on derivative assets and liabilities for non-performance risk	3	2
Derivatives designated as accounting hedges:
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	165,636	148,075
Derivative assets, gross amount	317	235
Derivative liabilities, gross amount	461	317
Derivatives designated as accounting hedges: | Interest rate contracts:
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	157,334	139,337
Derivative assets, gross amount	315	234
Derivative liabilities, gross amount	162	49
Derivatives designated as accounting hedges: | Interest rate contracts: | Fair value hedges
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	64,284	68,987
Derivative assets, gross amount	8	18
Derivative liabilities, gross amount	82	26
Derivatives designated as accounting hedges: | Interest rate contracts: | Cash flow hedges
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	93,050	70,350
Derivative assets, gross amount	307	216
Derivative liabilities, gross amount	80	23
Derivatives designated as accounting hedges: | Foreign exchange and other contracts
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	8,302	8,738
Derivative assets, gross amount	2	1
Derivative liabilities, gross amount	299	268
Derivatives designated as accounting hedges: | Foreign exchange and other contracts | Fair value hedges
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	557	1,380
Derivative assets, gross amount	0	0
Derivative liabilities, gross amount	66	113
Derivatives designated as accounting hedges: | Foreign exchange and other contracts | Cash flow hedges
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	2,645	2,488
Derivative assets, gross amount	0	0
Derivative liabilities, gross amount	59	66
Derivatives designated as accounting hedges: | Foreign exchange and other contracts | Net investment hedges
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	5,100	4,870
Derivative assets, gross amount	2	1
Derivative liabilities, gross amount	174	89
Derivatives not designated as accounting hedges:
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	148,438	145,964
Derivative assets, gross amount	2,091	2,440
Derivative liabilities, gross amount	2,196	2,615
Derivatives not designated as accounting hedges: | Customer accommodation:
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	144,506	142,137
Derivative assets, gross amount	2,052	2,399
Derivative liabilities, gross amount	2,150	2,576
Derivatives not designated as accounting hedges: | Interest rate contracts: | Customer accommodation:
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	103,279	103,489
Derivative assets, gross amount	844	1,188
Derivative liabilities, gross amount	929	1,382
Derivatives not designated as accounting hedges: | Interest rate contracts: | Other interest rate exposures
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	921	872
Derivative assets, gross amount	19	21
Derivative liabilities, gross amount	14	31
Derivatives not designated as accounting hedges: | Foreign exchange and other contracts | Customer accommodation:
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	5,580	5,153
Derivative assets, gross amount	31	50
Derivative liabilities, gross amount	39	47
Derivatives not designated as accounting hedges: | Commodity contracts | Customer accommodation:
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	35,647	33,495
Derivative assets, gross amount	1,177	1,161
Derivative liabilities, gross amount	1,182	1,147
Derivatives not designated as accounting hedges: | Other contracts
Derivatives, Fair Value [Line Items]
Notional or Contractual Amount	3,011	2,955
Derivative assets, gross amount	20	20
Derivative liabilities, gross amount	$ 32	$ 8

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Derivative Instruments and Hedging Activities - Hedged Items in Fair Value Hedging Relationship (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Hedged Items In Fair Value Hedging Relationship [Line Items]
Total Assets	$ 32	$ 33
Discontinued Hedging Relationships, Assets	1,400	2,200
Designated hedged items	1,000	1,500
Investment securities available for sale
Hedged Items In Fair Value Hedging Relationship [Line Items]
Carrying Amount Assets	6,191	6,108
Total Assets	78	(8)
Discontinued Hedging Relationships, Assets	87	126
Interest-bearing deposits
Hedged Items In Fair Value Hedging Relationship [Line Items]
Carrying Amount Liabilities	(11,292)	(17,374)
Total Liabilities	64	277
Discontinued Hedging Relationships, Liabilities	0	0
Securitized debt obligations
Hedged Items In Fair Value Hedging Relationship [Line Items]
Carrying Amount Liabilities	(13,042)	(13,375)
Total Liabilities	242	503
Discontinued Hedging Relationships, Liabilities	0	0
Senior and subordinated notes
Hedged Items In Fair Value Hedging Relationship [Line Items]
Carrying Amount Liabilities	(31,410)	(30,899)
Total Liabilities	385	971
Discontinued Hedging Relationships, Liabilities	$ (258)	$ (372)

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Derivative Instruments and Hedging Activities - Offsetting Assets (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Derivative assets
Gross Amounts	$ 2,408	$ 2,675
Financial Instruments	(474)	(433)
Cash Collateral Received	(251)	(572)
Net Amounts as Recognized	1,683	1,670
Securities Collateral Held Under Master Netting Agreements	(11)	(22)
Net Exposure	$ 1,672	$ 1,648

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Derivative Instruments and Hedging Activities - Offsetting Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Derivative liabilities
Gross Amounts	$ 2,657	$ 2,932
Financial Instruments	(474)	(433)
Cash Collateral Pledged	(148)	(164)
Net Amounts as Recognized	2,035	2,335
Securities Collateral Pledged Under Master Netting Agreements	(27)	(13)
Net Exposure	2,008	2,322
Repurchase agreements
Gross Amounts	520	538
Financial Instruments	0	0
Cash Collateral Pledged	0	0
Net Amounts as Recognized	520	538
Securities Collateral Pledged Under Master Netting Agreements	(520)	(538)
Net Exposure	0	0
Derivative, collateral, obligation to return cash	428	858
Derivative, collateral, obligation to return securities	11	16
Derivative, collateral, right to reclaim cash	1,700	1,700
Securities sold under repurchase agreements, fair value of collateral	$ 531	$ 549

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Derivative Instruments and Hedging Activities - Effects of Fair Value and Cash Flow Hedge Accounting (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest income:
Investment Securities	$ 733	$ 627	$ 2,120	$ 1,881
Loans, Including Loans Held for Sale	10,547	9,696	30,460	27,476
Other	580	550	1,737	1,436
Interest-bearing Deposits	(2,945)	(2,611)	(8,631)	(6,744)
Securitized Debt Obligations	(234)	(249)	(753)	(696)
Senior and Subordinated Notes	(596)	(579)	(1,793)	(1,596)
Non-interest income (expense)	244	256	803	730
Amortization expense (benefit)	(21)	(20)	(62)	(56)
Non-Interest Income, Other
Interest income:
Realized gain (loss) on foreign exchange contracts reclassified from AOCI	(56)	100	(1)	70
Fair value hedges | Investment Securities
Interest income:
Net income (expense) recognized on fair value hedges	23	21	74	56
Fair value hedges | Loans, Including Loans Held for Sale
Interest income:
Net income (expense) recognized on fair value hedges	0	0	0	0
Fair value hedges | Other
Interest income:
Net income (expense) recognized on fair value hedges	0	0	0	0
Fair value hedges | Interest-bearing Deposits
Interest income:
Net income (expense) recognized on fair value hedges	(72)	(104)	(277)	(281)
Fair value hedges | Securitized Debt Obligations
Interest income:
Net income (expense) recognized on fair value hedges	(102)	(112)	(339)	(298)
Fair value hedges | Senior and Subordinated Notes
Interest income:
Net income (expense) recognized on fair value hedges	(211)	(236)	(649)	(643)
Fair value hedges | Non-Interest Income, Other
Interest income:
Net income (expense) recognized on fair value hedges	0	0	0	0
Fair value hedges | Interest rate contracts: | Investment Securities
Interest income:
Interest recognized on derivatives	39	42	125	113
Gains (losses) recognized on derivatives	(144)	(15)	(137)	(35)
Gains (losses) recognized on hedged items	128	(6)	86	(22)
Excluded component of fair value hedges	0	0	0	0
Fair value hedges | Interest rate contracts: | Loans, Including Loans Held for Sale
Interest income:
Interest recognized on derivatives	0	0	0	0
Gains (losses) recognized on derivatives	0	0	0	0
Gains (losses) recognized on hedged items	0	0	0	0
Excluded component of fair value hedges	0	0	0	0
Fair value hedges | Interest rate contracts: | Other
Interest income:
Interest recognized on derivatives	0	0	0	0
Gains (losses) recognized on derivatives	0	0	0	0
Gains (losses) recognized on hedged items	0	0	0	0
Excluded component of fair value hedges	0	0	0	0
Fair value hedges | Interest rate contracts: | Interest-bearing Deposits
Interest income:
Interest recognized on derivatives	(73)	(104)	(277)	(278)
Gains (losses) recognized on derivatives	247	(38)	213	(84)
Gains (losses) recognized on hedged items	(246)	38	(213)	81
Excluded component of fair value hedges	0	0	0	0
Fair value hedges | Interest rate contracts: | Securitized Debt Obligations
Interest income:
Interest recognized on derivatives	(102)	(112)	(339)	(297)
Gains (losses) recognized on derivatives	210	4	261	(10)
Gains (losses) recognized on hedged items	(210)	(4)	(261)	9
Excluded component of fair value hedges	0	0	0	0
Fair value hedges | Interest rate contracts: | Senior and Subordinated Notes
Interest income:
Interest recognized on derivatives	(248)	(275)	(771)	(754)
Gains (losses) recognized on derivatives	1,010	(273)	742	(275)
Gains (losses) recognized on hedged items	(973)	313	(627)	388
Excluded component of fair value hedges	0	(1)	7	(2)
Fair value hedges | Interest rate contracts: | Non-Interest Income, Other
Interest income:
Interest recognized on derivatives	0	0	0	0
Gains (losses) recognized on derivatives	21	(42)	(18)	(17)
Gains (losses) recognized on hedged items	(21)	42	18	17
Excluded component of fair value hedges	0	0	0	0
Cash flow hedges | Investment Securities
Interest income:
Net income (expense) recognized on cash flow hedges	0	0	0	0
Cash flow hedges | Loans, Including Loans Held for Sale
Interest income:
Net income (expense) recognized on cash flow hedges	(314)	(320)	(936)	(879)
Cash flow hedges | Other
Interest income:
Net income (expense) recognized on cash flow hedges	2	3	7	9
Cash flow hedges | Interest-bearing Deposits
Interest income:
Net income (expense) recognized on cash flow hedges	0	0	0	0
Cash flow hedges | Securitized Debt Obligations
Interest income:
Net income (expense) recognized on cash flow hedges	0	0	0	0
Cash flow hedges | Senior and Subordinated Notes
Interest income:
Net income (expense) recognized on cash flow hedges	0	0	0	0
Cash flow hedges | Non-Interest Income, Other
Interest income:
Net income (expense) recognized on cash flow hedges	1	1	1	1
Cash flow hedges | Interest rate contracts: | Investment Securities
Interest income:
Realized gains (losses) reclassified from AOCI into net income	0	0	0	0
Cash flow hedges | Interest rate contracts: | Loans, Including Loans Held for Sale
Interest income:
Realized gains (losses) reclassified from AOCI into net income	(314)	(320)	(936)	(879)
Cash flow hedges | Interest rate contracts: | Other
Interest income:
Realized gains (losses) reclassified from AOCI into net income	0	0	0	0
Cash flow hedges | Interest rate contracts: | Interest-bearing Deposits
Interest income:
Realized gains (losses) reclassified from AOCI into net income	0	0	0	0
Cash flow hedges | Interest rate contracts: | Securitized Debt Obligations
Interest income:
Realized gains (losses) reclassified from AOCI into net income	0	0	0	0
Cash flow hedges | Interest rate contracts: | Senior and Subordinated Notes
Interest income:
Realized gains (losses) reclassified from AOCI into net income	0	0	0	0
Cash flow hedges | Interest rate contracts: | Non-Interest Income, Other
Interest income:
Realized gains (losses) reclassified from AOCI into net income	0	0	0	0
Cash flow hedges | Foreign exchange and other contracts | Investment Securities
Interest income:
Realized gains (losses) reclassified from AOCI into net income	0	0	0	0
Cash flow hedges | Foreign exchange and other contracts | Loans, Including Loans Held for Sale
Interest income:
Realized gains (losses) reclassified from AOCI into net income	0	0	0	0
Cash flow hedges | Foreign exchange and other contracts | Other
Interest income:
Realized gains (losses) reclassified from AOCI into net income	2	3	7	9
Cash flow hedges | Foreign exchange and other contracts | Interest-bearing Deposits
Interest income:
Realized gains (losses) reclassified from AOCI into net income	0	0	0	0
Cash flow hedges | Foreign exchange and other contracts | Securitized Debt Obligations
Interest income:
Realized gains (losses) reclassified from AOCI into net income	0	0	0	0
Cash flow hedges | Foreign exchange and other contracts | Senior and Subordinated Notes
Interest income:
Realized gains (losses) reclassified from AOCI into net income	0	0	0	0
Cash flow hedges | Foreign exchange and other contracts | Non-Interest Income, Other
Interest income:
Realized gains (losses) reclassified from AOCI into net income	$ 1	$ 1	$ 1	$ 1

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Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain (loss) (net after-tax) recorded in AOCI related to derivatives designated as cash flow hedges expected to be reclassified to earnings over the next 12 months	$ (526)
Maximum length of time over which forecasted transactions were hedged, years	9 years 6 months

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Derivative Instruments and Hedging Activities - Gains Losses on Freestanding Derivatives (Details) - Other non-interest income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other non-interest income:	$ 28	$ 97	$ 203	$ 242
Interest rate contracts:
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other non-interest income:	11	23	48	67
Interest rate contracts: | Customer accommodation:
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other non-interest income:	3	7	20	26
Interest rate contracts: | Other interest rate exposures
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other non-interest income:	48	81	206	199
Commodity contracts | Customer accommodation:
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other non-interest income:	5	11	13	28
Foreign exchange and other contracts | Customer accommodation:
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other non-interest income:	3	5	15	13
Other contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other non-interest income:	$ (31)	$ (7)	$ (51)	$ (24)

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Stockholders' Equity - Preferred Stock Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Class of Stock [Line Items]
Carrying Value (in millions)	$ 4,845	$ 4,845
Series I
Class of Stock [Line Items]
Per Annum Dividend Rate	5.00%
Liquidation Preference per Share (in dollars per share)	$ 1,000
Total Shares Outstanding (in shares)	1,500,000
Carrying Value (in millions)	$ 1,462	1,462
Series J
Class of Stock [Line Items]
Per Annum Dividend Rate	4.80%
Liquidation Preference per Share (in dollars per share)	$ 1,000
Total Shares Outstanding (in shares)	1,250,000
Carrying Value (in millions)	$ 1,209	1,209
Series K
Class of Stock [Line Items]
Per Annum Dividend Rate	4.625%
Liquidation Preference per Share (in dollars per share)	$ 1,000
Total Shares Outstanding (in shares)	125,000
Carrying Value (in millions)	$ 122	122
Series L
Class of Stock [Line Items]
Per Annum Dividend Rate	4.375%
Liquidation Preference per Share (in dollars per share)	$ 1,000
Total Shares Outstanding (in shares)	675,000
Carrying Value (in millions)	$ 652	652
Series M
Class of Stock [Line Items]
Liquidation Preference per Share (in dollars per share)	$ 1,000
Total Shares Outstanding (in shares)	1,000,000
Carrying Value (in millions)	$ 988	988
Series M | Maximum
Class of Stock [Line Items]
Per Annum Dividend Rate	3.95%
Series M | Minimum
Class of Stock [Line Items]
Per Annum Dividend Rate	3.157%
Series N
Class of Stock [Line Items]
Per Annum Dividend Rate	4.25%
Liquidation Preference per Share (in dollars per share)	$ 1,000
Total Shares Outstanding (in shares)	425,000
Carrying Value (in millions)	$ 412	$ 412

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Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
AOCI beginning balance			$ (8,268)
Other comprehensive income (loss) before reclassifications	$ 3,110	$ (2,571)	1,257	$ (2,916)
Amounts reclassified from AOCI into earnings	304	165	724	608
Other comprehensive income (loss), net of tax	3,414	(2,406)	1,981	(2,308)
AOCI ending balance	(6,287)		(6,287)
Securities Available for Sale
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
AOCI beginning balance	(7,797)	(7,602)	(6,769)	(7,676)
Other comprehensive income (loss) before reclassifications	2,274	(2,108)	1,246	(2,034)
Amounts reclassified from AOCI into earnings	26	0	26	0
Other comprehensive income (loss), net of tax	2,300	(2,108)	1,272	(2,034)
AOCI ending balance	(5,497)	(9,710)	(5,497)	(9,710)
Hedging relationships:
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
AOCI beginning balance	(1,885)	(2,205)	(1,493)	(2,182)
Other comprehensive income (loss) before reclassifications	791	(424)	(21)	(890)
Amounts reclassified from AOCI into earnings	278	165	698	608
Other comprehensive income (loss), net of tax	1,069	(259)	677	(282)
AOCI ending balance	(816)	(2,464)	(816)	(2,464)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
AOCI beginning balance	12	27	26	(20)
Other comprehensive income (loss) before reclassifications	45	(39)	31	8
Amounts reclassified from AOCI into earnings	0	0	0	0
Other comprehensive income (loss), net of tax	45	(39)	31	8
AOCI ending balance	57	(12)	57	(12)
Other:
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
AOCI beginning balance	(31)	(38)	(32)	(38)
Other comprehensive income (loss) before reclassifications	0	0	1	0
Amounts reclassified from AOCI into earnings	0	0	0	0
Other comprehensive income (loss), net of tax	0	0	1	0
AOCI ending balance	(31)	(38)	(31)	(38)
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
AOCI beginning balance	(9,701)	(9,818)	(8,268)	(9,916)
AOCI ending balance	(6,287)	(12,224)	(6,287)	(12,224)
Net investment hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other comprehensive gain (loss)	$ (134)	$ 115	$ (72)	$ (1)

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Stockholders' Equity - Reclassifications from AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Non-interest income (expense)	$ 244	$ 256	$ 803	$ 730
Income tax provision (benefit)	441	432	797	932
Net income	1,777	1,790	3,654	4,181
Interest Income (Loss)	8,076	7,423	23,110	21,722
Income (loss) from continuing operations before income taxes	2,218	2,222	4,451	5,113
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(304)	(165)	(724)	(608)
Securities Available for Sale | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Non-interest income (expense)	(34)	0	(34)	0
Income tax provision (benefit)	(8)	0	(8)	0
Net income	(26)	0	(26)	0
Hedging relationships: | Interest rate contracts: | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest Income (Loss)	(314)	(320)	(936)	(879)
Hedging relationships: | Foreign exchange and other contracts | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Non-interest income (expense)	(56)	100	(1)	70
Income tax provision (benefit)	(90)	(53)	(225)	(194)
Net income	(278)	(165)	(698)	(608)
Interest Income (Loss)	2	3	7	9
Interest income (expense)	0	(1)	7	(2)
Income (loss) from continuing operations before income taxes	(368)	(218)	(923)	(802)
Other: | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax provision (benefit)	0	0	0	0
Net income	0	0	0	0
Income (loss) from continuing operations before income taxes	$ 0	$ 0	$ 0	$ 0

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Stockholders' Equity - Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Before Tax
Net unrealized gains (losses) on securities available for sale	$ 3,033	$ (2,780)	$ 1,674	$ (2,684)
Net unrealized gains (losses) on hedging relationships	1,412	(342)	894	(372)
Foreign currency translation adjustments	2	(2)	8	8
Other			1	0
Other comprehensive income (loss)	4,447	(3,124)	2,577	(3,048)
Provision (Benefit)
Net unrealized gains (losses) on securities available for sale	733	(672)	402	(650)
Net unrealized gains (losses) on hedging relationships	343	(83)	217	(90)
Foreign currency translation adjustments	(43)	37	(23)	0
Other			0	0
Other comprehensive income (loss)	1,033	(718)	596	(740)
After Tax
Net unrealized gains (losses) on securities available for sale	2,300	(2,108)	1,272	(2,034)
Net unrealized gains (losses) on hedging relationships	1,069	(259)	677	(282)
Foreign currency translation adjustments	45	(39)	31	8
Other	0	0	1	0
Other comprehensive income (loss), net of tax	$ 3,414	$ (2,406)	$ 1,981	$ (2,308)

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Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income	$ 1,777	$ 1,790	$ 3,654	$ 4,181
Dividends and undistributed earnings allocated to participating securities	(28)	(28)	(60)	(67)
Preferred stock dividends	(57)	(57)	(171)	(171)
Net income available to common stockholders	$ 1,692	$ 1,705	$ 3,423	$ 3,943
Total weighted-average basic common shares outstanding (in shares)	383,000	382,500	382,800	382,700
Effect of dilutive securities:
Stock options (in shares)	100	100	200	100
Other contingently issuable shares (in shares)	600	700	700	800
Total effect of dilutive securities (in shares)	700	800	900	900
Total weighted-average diluted common shares outstanding (in shares)	383,700	383,300	383,700	383,600
Basic earnings per common share:
Net income per basic common share (in dollars per share)	$ 4.42	$ 4.46	$ 8.94	$ 10.31
Diluted earnings per common share:
Net income per diluted common share (in dollars per share)	$ 4.41	$ 4.45	$ 8.92	$ 10.28
Award
Diluted earnings per common share:
Anti-dilutive options excluded from the computation of diluted earnings per share (in shares)	0	0	43	13

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Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Assets:
Fair Value	$ 83,500	$ 79,117
Loans held for sale	$ 77	$ 347
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Other assets:
Derivative assets, gross amount	$ 2,408	$ 2,675
Derivative Asset, netting adjustments	(725)	(1,005)
Derivative asset	1,683	1,670
Liabilities:
Derivative liabilities, gross amount	2,657	2,932
Derivative Liability, netting adjustments	(622)	(597)
Derivative liability	$ 2,035	$ 2,335
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Net valuation allowance	$ 3	$ 2
Level 1
Assets:
Loans held for sale	0	0
Level 2
Assets:
Loans held for sale	19	515
Level 3
Assets:
Loans held for sale	0	0
Recurring
Assets:
Fair Value	83,500	79,117
Loans held for sale	77	347
Other assets:
Derivative asset	1,683	1,670
Other	709	627
Total	85,969	81,761
Liabilities:
Derivative liability	2,035	2,335
Recurring | Level 1
Assets:
Fair Value	6,163	5,408
Loans held for sale	0	0
Other assets:
Derivative assets, gross amount	866	788
Other	675	589
Total	7,704	6,785
Liabilities:
Derivative liabilities, gross amount	574	449
Deferred compensation plan assets	670	578
Recurring | Level 2
Assets:
Fair Value	77,155	73,431
Loans held for sale	77	347
Other assets:
Derivative assets, gross amount	929	1,001
Other	0	3
Total	78,161	74,782
Liabilities:
Derivative liabilities, gross amount	1,515	1,655
Recurring | Level 3
Assets:
Fair Value	182	278
Loans held for sale	0	0
Other assets:
Derivative assets, gross amount	613	886	$ 1,300
Other	34	35
Total	829	1,199
Liabilities:
Derivative liabilities, gross amount	568	828	$ 1,300
Retained interests in securitizations	34	35
Recurring | Fair Value Inputs Level 1 And Level 2
Liabilities:
Equity securities	5	14
Debt and equity securities, unrealized gain (loss)	5	5
U.S. Treasury securities
Assets:
Fair Value	6,032	5,282
U.S. Treasury securities | Recurring
Assets:
Fair Value	6,032	5,282
U.S. Treasury securities | Recurring | Level 1
Assets:
Fair Value	6,032	5,282
U.S. Treasury securities | Recurring | Level 2
Assets:
Fair Value	0	0
U.S. Treasury securities | Recurring | Level 3
Assets:
Fair Value	0	0
Total RMBS
Assets:
Fair Value	66,307	63,638
Total RMBS | Recurring
Assets:
Fair Value	66,307	63,638
Total RMBS | Recurring | Level 1
Assets:
Fair Value	0	0
Total RMBS | Recurring | Level 2
Assets:
Fair Value	66,127	63,492
Total RMBS | Recurring | Level 3
Assets:
Fair Value	180	146
CMBS | Recurring
Assets:
Fair Value	8,183	8,323
CMBS | Recurring | Level 1
Assets:
Fair Value	0	0
CMBS | Recurring | Level 2
Assets:
Fair Value	8,181	8,191
CMBS | Recurring | Level 3
Assets:
Fair Value	2	132
Other securities
Assets:
Fair Value	2,978	1,874
Other securities | Recurring
Assets:
Fair Value	2,978	1,874
Other securities | Recurring | Level 1
Assets:
Fair Value	131	126
Other securities | Recurring | Level 2
Assets:
Fair Value	2,847	1,748
Other securities | Recurring | Level 3
Assets:
Fair Value	$ 0	$ 0

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Fair Value Measurement - Level 3 Recurring Fair Value Rollforward (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Derivative, Fair Value, Net [Abstract]
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
Derivative assets, gross amount	$ 2,408		$ 2,408		$ 2,675
Derivative liabilities, gross amount	2,657		2,657		2,932
Recurring | Level 3
Derivative, Fair Value, Net [Abstract]
Beginning balance			58
Ending balance	45		45
Net unrealized gains (losses) included in OCI related to assets and liabilities still held	(2)	$ (9)	(2)	$ (14)
Derivative assets, gross amount	613	1,300	613	1,300	886
Derivative liabilities, gross amount	568	1,300	568	1,300	$ 828
Total RMBS | Recurring | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	304	206	146	236
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income	2	2	6	6
Total Gains or (Losses) (Realized/Unrealized), Included in OCI	11	(5)	8	(4)
Purchases	0	0	0	0
Sales	0	0	0	0
Issuances	0	0	0	0
Settlements	(4)	(6)	(9)	(17)
Transfers Into Level 3	2	2	187	47
Transfers Out of Level 3	(135)	(50)	(158)	(119)
Ending balance	180	149	180	149
Derivative, Fair Value, Net [Abstract]
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held	2	2	5	5
CMBS | Recurring | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	2	133	132	142
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income	0	0	0	0
Total Gains or (Losses) (Realized/Unrealized), Included in OCI	0	(6)	(3)	(12)
Purchases	0	0	0	0
Sales	0	0	0	0
Issuances	0	0	0	0
Settlements	0	(1)	(3)	(4)
Transfers Into Level 3	0	0	0	0
Transfers Out of Level 3	0	0	(124)	0
Ending balance	2	126	2	126
Derivative, Fair Value, Net [Abstract]
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held	0	0	0	0
Total securities available for sale | Recurring | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	306	339	278	378
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income	2	2	6	6
Total Gains or (Losses) (Realized/Unrealized), Included in OCI	11	(11)	5	(16)
Purchases	0	0	0	0
Sales	0	0	0	0
Issuances	0	0	0	0
Settlements	(4)	(7)	(12)	(21)
Transfers Into Level 3	2	2	187	47
Transfers Out of Level 3	(135)	(50)	(282)	(119)
Ending balance	182	275	182	275
Derivative, Fair Value, Net [Abstract]
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held	2	2	5	5
Retained interests in securitizations | Recurring | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	34	36	35	36
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income	0	(1)	(1)	(1)
Total Gains or (Losses) (Realized/Unrealized), Included in OCI	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issuances	0	0	0	0
Settlements	0	0	0	0
Transfers Into Level 3	0	0	0	0
Transfers Out of Level 3	0	0	0	0
Ending balance	34	35	34	35
Derivative, Fair Value, Net [Abstract]
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held	0	(1)	(1)	(1)
Net derivative assets (liabilities) | Recurring | Level 3
Derivative, Fair Value, Net [Abstract]
Beginning balance	69	64	58	5
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income	(20)	(2)	(17)	(20)
Total Gains or (Losses) (Realized/Unrealized), Included in OCI	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issuances	4	3	1	176
Settlements	(8)	18	3	75
Transfers Into Level 3	0	(15)	0	(167)
Transfers Out of Level 3	0	0	0	(1)
Ending balance	45	68	45	68
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held	$ (15)	$ 4	$ (18)	$ 71

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Fair Value Measurement - Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Millions	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 83,500	$ 79,117
Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	83,500	79,117
Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	182	278
Retained interests in securitizations	34	35
Net derivative assets (liabilities)	45	58
Total RMBS
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	66,307	63,638
Total RMBS | Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	66,307	63,638
Total RMBS | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	180	146
CMBS | Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	8,183	8,323
CMBS | Recurring | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 2	$ 132
Yield | Total RMBS | Recurring | Level 3 | Discounted cash flows | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.04	0.02
Yield | Total RMBS | Recurring | Level 3 | Discounted cash flows | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.14	0.19
Yield | Total RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.06	0.07
Yield | CMBS | Recurring | Level 3 | Discounted cash flows | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.05	0.05
Yield | CMBS | Recurring | Level 3 | Discounted cash flows | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.07	0.07
Yield | CMBS | Recurring | Level 3 | Discounted cash flows | Weighted average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.07	0.05
Life of receivables (months) | Recurring | Level 3 | Discounted cash flows | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Retained interests, measurement input, life of receivables	31 months	33 months
Life of receivables (months) | Recurring | Level 3 | Discounted cash flows | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Retained interests, measurement input, life of receivables	73 months	69 months
Voluntary prepayment rate | Recurring | Level 3 | Discounted cash flows | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Retained interests, measurement input	0.07	0.09
Voluntary prepayment rate | Recurring | Level 3 | Discounted cash flows | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Retained interests, measurement input	0.09	0.09
Voluntary prepayment rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0	0
Voluntary prepayment rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.12	0.12
Voluntary prepayment rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.07	0.07
Discount rate | Recurring | Level 3 | Discounted cash flows | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Retained interests, measurement input	0.05	0.05
Discount rate | Recurring | Level 3 | Discounted cash flows | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Retained interests, measurement input	0.14	0.14
Default rate | Recurring | Level 3 | Discounted cash flows | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Retained interests, measurement input	0.01	0.02
Default rate | Recurring | Level 3 | Discounted cash flows | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Retained interests, measurement input	0.02	0.02
Default rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0	0
Default rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.06	0.10
Default rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.01	0.01
Loss severity | Recurring | Level 3 | Discounted cash flows | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Retained interests, measurement input	0.46	0.53
Loss severity | Recurring | Level 3 | Discounted cash flows | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Retained interests, measurement input	1.55	1.63
Loss severity | Total RMBS | Recurring | Level 3 | Discounted cash flows | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.25	0.30
Loss severity | Total RMBS | Recurring | Level 3 | Discounted cash flows | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.80	0.80
Loss severity | Total RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Securities available-for-sale, measurement input	0.61	0.61
Swap rates | Recurring | Level 3 | Discounted cash flows | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Net derivative assets (liabilities), measurement input	0.03	0.03
Swap rates | Recurring | Level 3 | Discounted cash flows | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Net derivative assets (liabilities), measurement input	0.05	0.05
Swap rates | Recurring | Level 3 | Discounted cash flows | Weighted average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Net derivative assets (liabilities), measurement input	0.03	0.04

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Fair Value Measurement - Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	$ 77	$ 347
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	0	0
Loans held for sale	19	515
Other investments	1,330	1,329
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	308,901	308,044
Loans held for sale	0	0
Other investments	0	0
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	738	545
Loans held for sale	10	37
Other assets	100	214
Total	848	796
Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	0	0
Loans held for sale	10	37
Other assets	0	0
Total	10	37
Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	738	545
Loans held for sale	0	0
Other assets	100	214
Total	838	759
Equity investments accounted for under measurement alternative	47	46
Other investments	1
Foreclosed property and repossessed assets, fair value disclosure	$ 52	45
Long lived assets held for sale		$ 123

XML

Fair Value Measurement - Additional Information (Details) - Appraisal value - Level 3 - Non-Recoverable Rate	Sep. 30, 2024	Dec. 31, 2023
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, measurement input	7.00%	0.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, measurement input	61.00%	100.00%
Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment, measurement input	19.00%	18.00%

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Fair Value Measurement - Nonrecurring Fair Value Measurements Included in Earnings (Details) - Nonrecurring - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	$ (224)	$ (315)
Loans held for sale	(6)	0
Other assets	(64)	(52)
Total	$ (294)	$ (367)

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Fair Value Measurement - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Financial assets:
Loans held for sale	$ 77	$ 347
Level 1
Financial assets:
Cash and cash equivalents	3,976	4,903
Restricted cash for securitization investors	421	458
Net loans held for investment	0	0
Loans held for sale	0	0
Interest receivable	0	0
Other investments	0	0
Financial liabilities:
Deposits with defined maturities	0	0
Securitized debt obligations	0	0
Senior and subordinated notes	0	0
Federal funds purchased and securities loaned or sold under agreements to repurchase	0	0
Interest payable	0	0
Level 2
Financial assets:
Cash and cash equivalents	45,322	38,394
Restricted cash for securitization investors	0	0
Net loans held for investment	0	0
Loans held for sale	19	515
Interest receivable	2,577	2,478
Other investments	1,330	1,329
Financial liabilities:
Deposits with defined maturities	77,893	82,990
Securitized debt obligations	15,939	18,067
Senior and subordinated notes	33,694	31,524
Federal funds purchased and securities loaned or sold under agreements to repurchase	520	538
Interest payable	705	649
Level 3
Financial assets:
Cash and cash equivalents	0	0
Restricted cash for securitization investors	0	0
Net loans held for investment	308,901	308,044
Loans held for sale	0	0
Interest receivable	0	0
Other investments	0	0
Financial liabilities:
Deposits with defined maturities	0	0
Securitized debt obligations	0	0
Senior and subordinated notes	0	0
Federal funds purchased and securities loaned or sold under agreements to repurchase	0	0
Interest payable	0	0
Carrying Value
Financial assets:
Cash and cash equivalents	49,298	43,297
Restricted cash for securitization investors	421	458
Net loans held for investment	303,709	305,176
Loans held for sale	19	507
Interest receivable	2,577	2,478
Other investments	1,330	1,329
Financial liabilities:
Deposits with defined maturities	77,678	83,014
Securitized debt obligations	15,881	18,043
Senior and subordinated notes	32,911	31,248
Federal funds purchased and securities loaned or sold under agreements to repurchase	520	538
Interest payable	705	649
Estimated Fair Value
Financial assets:
Cash and cash equivalents	49,298	43,297
Restricted cash for securitization investors	421	458
Net loans held for investment	308,901	308,044
Loans held for sale	19	515
Interest receivable	2,577	2,478
Other investments	1,330	1,329
Financial liabilities:
Deposits with defined maturities	77,893	82,990
Securitized debt obligations	15,939	18,067
Senior and subordinated notes	33,694	31,524
Federal funds purchased and securities loaned or sold under agreements to repurchase	520	538
Interest payable	$ 705	$ 649

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Business Segments and Revenue from Contracts with Customers - Additional Information (Details)	9 Months Ended
	Sep. 30, 2024 segment
Segment Reporting [Abstract]
Number of operating segments	3

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Business Segments and Revenue from Contracts with Customers - Segment Results and Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Net interest income (loss)	$ 8,076	$ 7,423	$ 23,110	$ 21,722
Non-interest income (loss)	1,938	1,943	5,812	5,559
Total net revenue (loss)	10,014	9,366	28,922	27,281
Provision for credit losses	2,482	2,284	9,074	7,569
Non-interest expense	5,314	4,860	15,397	14,599
Income (loss) from continuing operations before income taxes	2,218	2,222	4,451	5,113
Income tax provision (benefit)	441	432	797	932
Income (loss) from continuing operations, net of tax	1,777	1,790	3,654	4,181
Loans held for investment	320,243	314,780	320,243	314,780
Deposits	353,631	346,011	353,631	346,011	$ 348,413
Uncollectible portion of billed finance charges and fees	624	449	1,900	1,300
Operating segments | Credit Card
Segment Reporting Information [Line Items]
Net interest income (loss)	5,743	5,114	16,309	14,498
Non-interest income (loss)	1,509	1,513	4,491	4,375
Total net revenue (loss)	7,252	6,627	20,800	18,873
Provision for credit losses	2,084	1,953	7,888	6,298
Non-interest expense	3,367	3,015	9,730	9,073
Income (loss) from continuing operations before income taxes	1,801	1,659	3,182	3,502
Income tax provision (benefit)	427	393	756	830
Income (loss) from continuing operations, net of tax	1,374	1,266	2,426	2,672
Loans held for investment	156,651	146,783	156,651	146,783
Deposits	0	0	0	0
Operating segments | Consumer Banking
Segment Reporting Information [Line Items]
Net interest income (loss)	2,028	2,133	6,064	6,762
Non-interest income (loss)	182	142	513	426
Total net revenue (loss)	2,210	2,275	6,577	7,188
Provision for credit losses	351	213	1,107	747
Non-interest expense	1,331	1,262	3,827	3,776
Income (loss) from continuing operations before income taxes	528	800	1,643	2,665
Income tax provision (benefit)	125	189	388	629
Income (loss) from continuing operations, net of tax	403	611	1,255	2,036
Loans held for investment	76,758	76,844	76,758	76,844
Deposits	309,569	290,789	309,569	290,789
Operating segments | Commercial Banking
Segment Reporting Information [Line Items]
Net interest income (loss)	596	621	1,804	1,901
Non-interest income (loss)	292	288	844	757
Total net revenue (loss)	888	909	2,648	2,658
Provision for credit losses	48	116	80	521
Non-interest expense	495	512	1,493	1,524
Income (loss) from continuing operations before income taxes	345	281	1,075	613
Income tax provision (benefit)	82	67	254	145
Income (loss) from continuing operations, net of tax	263	214	821	468
Loans held for investment	86,834	91,153	86,834	91,153
Deposits	30,598	36,035	30,598	36,035
Other
Segment Reporting Information [Line Items]
Net interest income (loss)	(291)	(445)	(1,067)	(1,439)
Non-interest income (loss)	(45)	0	(36)	1
Total net revenue (loss)	(336)	(445)	(1,103)	(1,438)
Provision for credit losses	(1)	2	(1)	3
Non-interest expense	121	71	347	226
Income (loss) from continuing operations before income taxes	(456)	(518)	(1,449)	(1,667)
Income tax provision (benefit)	(193)	(217)	(601)	(672)
Income (loss) from continuing operations, net of tax	(263)	(301)	(848)	(995)
Loans held for investment	0	0	0	0
Deposits	$ 13,464	$ 19,187	$ 13,464	$ 19,187

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Business Segments and Revenue from Contracts with Customers - Revenue from Contracts with Customers (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total contract revenue	$ 1,447	$ 1,475	$ 4,305	$ 4,169
Revenue (reduction) from other sources	491	468	1,507	1,390
Total non-interest income (loss)	1,938	1,943	5,812	5,559
Operating segments | Credit Card
Disaggregation of Revenue [Line Items]
Total contract revenue	1,153	1,226	3,493	3,508
Revenue (reduction) from other sources	356	287	998	867
Total non-interest income (loss)	1,509	1,513	4,491	4,375
Operating segments | Consumer Banking
Disaggregation of Revenue [Line Items]
Total contract revenue	172	141	485	408
Revenue (reduction) from other sources	10	1	28	18
Total non-interest income (loss)	182	142	513	426
Operating segments | Commercial Banking
Disaggregation of Revenue [Line Items]
Total contract revenue	121	108	326	253
Revenue (reduction) from other sources	171	180	518	504
Total non-interest income (loss)	292	288	844	757
Other
Disaggregation of Revenue [Line Items]
Total contract revenue	1	0	1	0
Revenue (reduction) from other sources	(46)	0	(37)	1
Total non-interest income (loss)	(45)	0	(36)	1
Interchange fees, net
Disaggregation of Revenue [Line Items]
Total contract revenue	1,228	1,234	3,622	3,586
Interchange fees, net | Operating segments | Credit Card
Disaggregation of Revenue [Line Items]
Total contract revenue	1,086	1,115	3,222	3,251
Interchange fees, net | Operating segments | Consumer Banking
Disaggregation of Revenue [Line Items]
Total contract revenue	113	92	318	270
Interchange fees, net | Operating segments | Commercial Banking
Disaggregation of Revenue [Line Items]
Total contract revenue	28	27	81	64
Interchange fees, net | Other
Disaggregation of Revenue [Line Items]
Total contract revenue	1	0	1	1
Service charges and other customer-related fees
Disaggregation of Revenue [Line Items]
Total contract revenue	115	99	305	236
Service charges and other customer-related fees | Operating segments | Credit Card
Disaggregation of Revenue [Line Items]
Total contract revenue	0	0	0	0
Service charges and other customer-related fees | Operating segments | Consumer Banking
Disaggregation of Revenue [Line Items]
Total contract revenue	23	21	66	64
Service charges and other customer-related fees | Operating segments | Commercial Banking
Disaggregation of Revenue [Line Items]
Total contract revenue	92	78	239	173
Service charges and other customer-related fees | Other
Disaggregation of Revenue [Line Items]
Total contract revenue	0	0	0	(1)
Other
Disaggregation of Revenue [Line Items]
Total contract revenue	104	142	378	347
Other | Operating segments | Credit Card
Disaggregation of Revenue [Line Items]
Total contract revenue	67	111	271	257
Other | Operating segments | Consumer Banking
Disaggregation of Revenue [Line Items]
Total contract revenue	36	28	101	74
Other | Operating segments | Commercial Banking
Disaggregation of Revenue [Line Items]
Total contract revenue	1	3	6	16
Other | Other
Disaggregation of Revenue [Line Items]
Total contract revenue	$ 0	$ 0	$ 0	$ 0

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Commitments, Contingencies, Guarantees and Others - Unfunded Lending Commitments: Contractual Amount and Carrying Value (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
Total unfunded lending commitments, contractual amount	$ 458,869	$ 441,283
Off-balance sheet lending commitment, carrying value	99	122
Credit Card:
Loss Contingencies [Line Items]
Credit car lines, contractual amount	412,905	392,867
Other loan commitments
Loss Contingencies [Line Items]
Credit car lines, contractual amount	44,698	46,951
Off-balance sheet lending commitment, carrying value	72	99
Advised line of credit	5,000	4,700
Letter of credit
Loss Contingencies [Line Items]
Standby letters of credit and commercial letters of credit, contractual amount	1,266	1,465
Off-balance sheet lending commitment, carrying value	$ 27	$ 23

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Commitments, Contingencies, Guarantees and Others - Loss Sharing Agreements (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Loss sharing agreements
Loss Contingencies [Line Items]
Guarantee obligation	$ 145	$ 137

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Commitments, Contingencies, Guarantees and Others - Litigation (Details) $ in Millions	Sep. 30, 2024 USD ($) claim
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	$ 400
Cybersecurity Incident
Loss Contingencies [Line Items]
Number of consumer class action cases filed for cybersecurity incident | claim	4
Penalty paid to the US treasury	$ 80

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Commitments, Contingencies, Guarantees and Others - Other Contingencies (Details) $ in Millions	9 Months Ended	11 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	$ 400	$ 400
FDIC Special Assessment
Loss Contingencies [Line Items]
Operating expenses	330	289
Loss contingency, estimate of possible loss	$ 200	$ 200