CAPITAL ONE FINANCIAL CORPCOF
CAPITAL ONE FINANCIAL CORP Segments Disclosure
NOTE 18—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, integration expenses and certain liabilities incurred by Discover ahead of the Transaction.
•Credit Card: Consists of our domestic consumer card lending, personal loans, domestic small business card lending and international card businesses in the U.K. and Canada.
•Consumer Banking: Consists of our deposit gathering and lending activities for consumers and small businesses, national auto lending and services offered by the Global Payment Network.
•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.
•Other category: Includes the residual impact of the allocation of our centralized Corporate Treasury group activities, such as management of our corporate investment portfolio, asset/liability management and oversight of our funds transfer pricing process, to our business segments. Accordingly, net gains and losses on our investment securities portfolio and certain trading activities are included in the Other category. 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 Transaction.
The results related to the acquired Home Loan business have been reflected as discontinued operations. As such, the related results have been excluded from continuing operations and business segment results.
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. The Chief Operating Decision Maker (“CODM”) for each of our segments is the Chief Executive Officer (“CEO”). The CODM uses the segments’ income (loss) from continuing operations after tax to assess segment performance and decide how to allocate 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 business segment. The allocation is unique to each business segment 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.
The following is additional information on the principles and methodologies used in preparing our business segment results.
•Net interest income: Interest income from loans and interest expense from deposits and other interest-bearing liabilities are reflected within each applicable business segment. Because funding and asset/liability management are managed centrally by our Corporate Treasury group, net interest income for our business segments also includes the results of a funds transfer pricing process that is intended to allocate a cost of funds used or credit for funds provided to all business segment assets and liabilities, respectively, using a matched funding concept. The taxable-equivalent benefit of tax-exempt products is also allocated to each business unit with a corresponding increase in income tax expense.
•Non-interest income: Non-interest fees and other revenue associated with loans or customers managed by each business segment and other direct revenues are accounted for within each business segment.
•Provision for credit losses: The provision for credit losses is directly attributable to the business segment in accordance with the loans each business segment manages.
•Non-interest expense: Non-interest expenses directly managed and incurred by a business segment are accounted for within each business segment. We allocate certain non-interest expenses indirectly incurred by business segments, such as corporate support functions, to each business segment based on various factors, including the actual cost of the services from the service providers, the utilization of the services, the number of employees or other relevant factors. Marketing expenses are included within non-interest expense and can be directly incurred by a business segment or indirectly incurred and allocated. Total marketing expense was $5.9 billion, $4.6 billion and $4.0 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Credit Card marketing expense was $5.0 billion, $3.9 billion and $3.4 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
•Goodwill and other intangible assets: Goodwill and other intangible assets are assigned to one or more segments at acquisition. Intangible amortization is included in the results of the applicable segment.
•Income taxes: Income taxes are assessed for each business segment based on a standard tax rate with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in the Other category.
•Loans held for investment: Loans are reported within each business segment in accordance with the loans each business segment manages.
•Deposits: Deposit gathering activities are reported within each business segment based on product or customer type served by that business segment.
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 years ended December 31, 2025, 2024 and 2023, selected balance sheet data as of December 31, 2025 and 2024 and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits.
Table 18.1: Segment Results and Reconciliation
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| (Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
| Net interest income (loss) | $ | 31,822 | $ | 8,758 | $ | 2,334 | $ | (36) | $ | 42,878 | ||||||||||||||||||||||
| Non-interest income (loss) | 7,738 | 1,675 | 1,321 | (178) | 10,556 | |||||||||||||||||||||||||||
Total net revenue (loss)(2) | 39,560 | 10,433 | 3,655 | (214) | 53,434 | |||||||||||||||||||||||||||
Provision for credit losses | 19,066 | 1,302 | 287 | 0 | 20,655 | |||||||||||||||||||||||||||
| Non-interest expense | 19,641 | 7,524 | 1,999 | 1,334 | 30,498 | |||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 853 | 1,607 | 1,369 | (1,548) | 2,281 | |||||||||||||||||||||||||||
| Income tax provision (benefit) | 208 | 382 | 326 | (723) | 193 | |||||||||||||||||||||||||||
| Income (loss) from continuing operations, net of tax | $ | 645 | $ | 1,225 | $ | 1,043 | $ | (825) | $ | 2,088 | ||||||||||||||||||||||
| Loans held for investment | $ | 279,570 | $ | 84,790 | $ | 89,262 | $ | 0 | $ | 453,622 | ||||||||||||||||||||||
| Deposits | 0 | 423,932 | 31,250 | 20,589 | 475,771 | |||||||||||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| (Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
| Net interest income (loss) | $ | 22,088 | $ | 8,023 | $ | 2,391 | $ | (1,294) | $ | 31,208 | ||||||||||||||||||||||
| Non-interest income (loss) | 6,076 | 695 | 1,210 | (77) | 7,904 | |||||||||||||||||||||||||||
Total net revenue (loss)(2) | 28,164 | 8,718 | 3,601 | (1,371) | 39,112 | |||||||||||||||||||||||||||
| Provision for credit losses | 10,272 | 1,435 | 8 | 1 | 11,716 | |||||||||||||||||||||||||||
| Non-interest expense | 13,576 | 5,372 | 2,011 | 527 | 21,486 | |||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 4,316 | 1,911 | 1,582 | (1,899) | 5,910 | |||||||||||||||||||||||||||
| Income tax provision (benefit) | 1,024 | 451 | 373 | (685) | 1,163 | |||||||||||||||||||||||||||
| Income (loss) from continuing operations, net of tax | $ | 3,292 | $ | 1,460 | $ | 1,209 | $ | (1,214) | $ | 4,747 | ||||||||||||||||||||||
| Loans held for investment | $ | 162,508 | $ | 78,092 | $ | 87,175 | $ | 0 | $ | 327,775 | ||||||||||||||||||||||
| Deposits | 0 | 318,329 | 31,691 | 12,687 | 362,707 | |||||||||||||||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
| (Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
| Net interest income (loss) | $ | 19,729 | $ | 8,713 | $ | 2,518 | $ | (1,719) | $ | 29,241 | ||||||||||||||||||||||
| Non-interest income | 5,940 | 589 | 1,002 | 15 | 7,546 | |||||||||||||||||||||||||||
Total net revenue (loss)(2) | 25,669 | 9,302 | 3,520 | (1,704) | 36,787 | |||||||||||||||||||||||||||
| Provision for credit losses | 8,651 | 1,169 | 605 | 1 | 10,426 | |||||||||||||||||||||||||||
| Non-interest expense | 12,490 | 5,178 | 2,011 | 637 | 20,316 | |||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 4,528 | 2,955 | 904 | (2,342) | 6,045 | |||||||||||||||||||||||||||
| Income tax provision (benefit) | 1,071 | 697 | 213 | (823) | 1,158 | |||||||||||||||||||||||||||
| Income (loss) from continuing operations, net of tax | $ | 3,457 | $ | 2,258 | $ | 691 | $ | (1,519) | $ | 4,887 | ||||||||||||||||||||||
| Loans held for investment | $ | 154,547 | $ | 75,437 | $ | 90,488 | $ | 0 | $ | 320,472 | ||||||||||||||||||||||
Deposits | 0 | 296,171 | 32,712 | 19,530 | 348,413 | |||||||||||||||||||||||||||
_________
(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 $3.3 billion, $2.6 billion and $1.9 billion for the years ended December 31, 2025, 2024 and 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 discount and interchange fees, service charges and other customer-related fees and other contract revenue. Discount and interchange fees are primarily from our Credit Card business and Consumer Banking business, inclusive of the Global Payment Network. These fees 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 ATM usage, transaction processing services on the PULSE Network, as well as various participation and membership fees. 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 merchant relationships. 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 years ended December 31, 2025, 2024 and 2023.
Table 18.2: Revenue from Contracts with Customers and Reconciliation to Segment Results
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| (Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
| Contract revenue: | ||||||||||||||||||||||||||||||||
Discount and interchange fees, net(2) | $ | 5,319 | $ | 1,035 | $ | 89 | $ | 0 | $ | 6,443 | ||||||||||||||||||||||
| Service charges and other customer-related fees | 81 | 394 | 378 | 4 | 857 | |||||||||||||||||||||||||||
| Other | 543 | 213 | 6 | 0 | 762 | |||||||||||||||||||||||||||
| Total contract revenue | 5,943 | 1,642 | 473 | 4 | 8,062 | |||||||||||||||||||||||||||
| Revenue (reduction) from other sources | 1,795 | 33 | 848 | (182) | 2,494 | |||||||||||||||||||||||||||
| Total non-interest income (loss) | $ | 7,738 | $ | 1,675 | $ | 1,321 | $ | (178) | $ | 10,556 | ||||||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| (Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
| Contract revenue: | ||||||||||||||||||||||||||||||||
Interchange fees, net(2) | $ | 4,340 | $ | 434 | $ | 106 | $ | 2 | $ | 4,882 | ||||||||||||||||||||||
| Service charges and other customer-related fees | 0 | 88 | 372 | 0 | 460 | |||||||||||||||||||||||||||
| Other | 413 | 142 | 18 | 0 | 573 | |||||||||||||||||||||||||||
| Total contract revenue | 4,753 | 664 | 496 | 2 | 5,915 | |||||||||||||||||||||||||||
| Revenue (reduction) from other sources | 1,323 | 31 | 714 | (79) | 1,989 | |||||||||||||||||||||||||||
| Total non-interest income (loss) | $ | 6,076 | $ | 695 | $ | 1,210 | $ | (77) | $ | 7,904 | ||||||||||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
| (Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
| Contract revenue: | ||||||||||||||||||||||||||||||||
Interchange fees, net(2) | $ | 4,333 | $ | 367 | $ | 91 | $ | 2 | $ | 4,793 | ||||||||||||||||||||||
| Service charges and other customer-related fees | 0 | 86 | 222 | (2) | 306 | |||||||||||||||||||||||||||
| Other | 413 | 102 | 31 | 0 | 546 | |||||||||||||||||||||||||||
Total contract revenue | 4,746 | 555 | 344 | 0 | 5,645 | |||||||||||||||||||||||||||
| Revenue from other sources | 1,194 | 34 | 658 | 15 | 1,901 | |||||||||||||||||||||||||||
| Total non-interest income | $ | 5,940 | $ | 589 | $ | 1,002 | $ | 15 | $ | 7,546 | ||||||||||||||||||||||
(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)Discount and interchange fees are presented net of customer reward expenses of $11.5 billion, $9.0 billion and $8.2 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.