Capital One Financial (COF) investor relations material

Technology transformation and integration

• Initiated a comprehensive tech transformation in 2013, rebuilding from the bottom of the tech stack up and going 100% cloud by 2020.

• Modernized data ecosystem for scalability and ease of use, investing heavily in enterprise platforms and automation.

• Achieved significant cost reductions in operating expenses, per-account servicing, and fraud costs through tech investments.

• Majority of application components are now serverless, with ongoing investments in AI and continuous deployment.

• Tech stack enabled a seamless Discover integration, with no need for card reissuance or new credentials for customers.

Discover integration and synergy realization

• Integration of Discover is progressing as planned, with $2.5 billion in projected revenue and cost synergies.

• Revenue synergies largely realized through full debit portfolio conversion; cost synergies expected mainly by 2027.

• Originations will be fully on the platform by September, with the back book transition by January.

• Earnings power projections remain consistent with initial estimates despite increased investment agendas.

Consumer health and credit performance

• Consumer financial health remains strong, with low unemployment, steady debt servicing, and robust spending.

• Inflation and oil prices are closely monitored as key risks, but current credit performance is stable.

• Recent origination vintages are performing better than pre-pandemic levels, aided by strategic adjustments and tech innovations.

• Delinquencies in 2026 are seasonally adjusted and performing slightly better than expected, with positive trends beyond tax refund effects.