Key Highlights:

• Net Income Decline: Capital One's net income for Q4 2024 was $1.1 billion, or $2.67 per diluted common share, a decrease compared to the previous quarter's $1.8 billion, or $4.41 per diluted common share, and up from $706 million, or $1.67 per diluted common share in Q4 2023.
• "Capital One Reports Fourth Quarter 2024 Net Income of $1.1 billion, or $2.67 per share" .
• Adjusted EPS: When accounting for adjusting items such as Discover integration costs and legal reserves, adjusted net income was $3.09 per diluted share, demonstrating underlying earnings strength.
• "Net of adjusting items, Fourth Quarter 2024 Net Income of $3.09 per share"
• Full Year 2024: Total net revenue increased 6 percent to $39.1 billion, with an increase in net interest margin of 25 basis points.

1. Revenue Growth Coupled with Expense Increase:

• Net Revenue: Total net revenue saw a modest increase of 2% quarter-over-quarter, reaching $10.2 billion, driven primarily by net interest income growth. For full year 2024, total net revenue grew by 6%.
• "Total net revenue increased 2 percent to $10.2 billion."
• Non-Interest Expense Surge: Total non-interest expense rose significantly by 15% to $6.1 billion. This jump was primarily due to a 24% increase in marketing costs and a 12% increase in operating expenses.
• "Total non-interest expense increased 15 percent to $6.1 billion...24 percent increase in marketing...12 percent increase in operating expenses." (Exhibit 99.1)
• For the full year of 2024 total non-interest expense increased by 6% driven by a 14% increase in marketing expense.
• Pre-Provision Earnings Decline: Pre-provision earnings decreased 13% to $4.1 billion, reflecting higher expenses impacting profitability.
• "Pre-provision earnings decreased 13 percent to $4.1 billion."