Capital One Financial (COF) investor relations material

Consumer and credit trends

• Consumer health remains strong across income and credit segments, with low unemployment and robust spending observed throughout 2026.

• Credit delinquencies and charge-offs are stable or better than seasonal trends, supported by high recoveries.

• Spending strength is consistent across the credit spectrum, including lower-income consumers.

• Ongoing monitoring supports continued growth in credit businesses.

Auto lending and underwriting

• Auto loan growth has been strong, but the market is highly competitive and volatile.

• Underwriting discipline is prioritized over aggressive growth, with no set growth targets.

• Credit performance in auto lending has remained stable, with origination vintages consistent with pre-pandemic levels.

• Strategic adjustments during the pandemic led to improved credit outcomes compared to industry peers.

Discover integration and portfolio outlook

• Discover credit card originations are now fully on the new platform, with back book migration in waves through January 2027.

• The 'brownout'—a shrinking Discover loan portfolio—continues due to prior credit tightening and strategic shifts.

• Growth opportunities are expected as Discover is integrated, leveraging a broader credit box and deeper marketing channels.

• Portfolio growth will be gradual, with milestones including stabilization and eventual expansion.