CAPITAL ONE FINANCIAL CORP Annual Report, Year Ended Dec 31, 2022

Capital One Financial Corporation reported a net income of $7.4 billion for 2022, a decrease from $12.4 billion in 2021, primarily driven by a higher provision for credit losses and increased non-interest expenses related to marketing and technology investments. Despite this, total net revenue grew to $34.3 billion, supported by higher net interest income due to increased loan balances in the credit card segment and stronger interchange fees from higher purchase volumes. The company's loan portfolio grew by $35 billion to $312.3 billion, with a corresponding increase in the allowance for credit losses, reflecting a normalization of credit trends and a more cautious economic outlook. Capital One maintained strong capital ratios, with its Common Equity Tier 1 (CET1) capital ratio at 12.5% as of December 31, 2022, exceeding regulatory requirements. The company repurchased $4.8 billion of its common stock during the year, reflecting its commitment to returning capital to shareholders. Management highlighted continued investment in technology and digital capabilities as key to future growth and competitiveness. The company's business segments, Credit Card, Consumer Banking, and Commercial Banking, all experienced varying degrees of growth and challenges, with Credit Card and Consumer Banking facing increased provisions for credit losses, while Commercial Banking saw growth in loan balances and yields.