Capital One Financial (COF) investor relations material

Executive summary

• Q3 net income was $3.5B, or $5.61 per diluted share; adjusted diluted EPS was $6.69.

• Revenue rose 3% QoQ and non-interest expense fell 2%, lifting pre-provision earnings 10% to $7.5B; adjusted pre-provision earnings grew 9%.

• YTD annualized Discover synergies were ~$1.8B, primarily from debit conversion and expense synergies, ahead of schedule.

Financial highlights

• Total net revenue was $16.344B, including $12.886B of net interest income; non-interest expense was $8.9B.

• Provision for credit losses was $2.916B, down $73M QoQ, and included $3.1B of net charge-offs and a $225M allowance release.

• GAAP and adjusted efficiency ratios were 54.19% and 48.76%; operating ratios were 44.43% and 38.99%.

• Adjusting items included $483M acquisition amortization, $338M Discover integration expenses and $47M Brex integration expenses; diluted EPS impacts were $0.60, $0.42 and $0.06.

Outlook and guidance

• Q4 marketing growth is expected to follow a Q3-to-Q4 seasonal pattern similar to 2025; marketing investment is expected to increase further in 2027.

• Discover card loans are expected to contract for several quarters before returning to growth; Q3 new originations rose YoY for the first time since deal close.

• Structural Discover-related NIM effects have largely played out; quarterly NIM will reflect seasonality, growth mix, repricing timing and customer behavior.

• Remaining deal synergies and the estimated Visa/Mastercard settlement impact were viewed as roughly offsetting; approval was pending and the potential impact range was wide.

• Marketing, Discover Network, technology and AI investment will continue; leadership cited visible earnings power alongside meaningful investment opportunities.