AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 29/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · 2/4 · Ownership of the Global Payment Network and reported network activity establish an operating platform; credit-card loan-balance leadership establishes scale. These are meaningful structural assets, but the catalog does not show superior unit costs, protected returns or participant reinforcement sufficient to establish a durable moat.
durability · — · The acquisition establishes network ownership, but the supplied operating history does not demonstrate persistent competitive protection. Acceptance trends, sustained customer dependence and comparable economic returns are absent. Regulatory exposure identifies a durability risk without establishing how long any advantage can persist.
customer dependency · — · Substantial deposits and network activity establish use, but do not identify customer switching costs, workflow dependence, exclusivity or renewal behavior. Aggregate balances cannot distinguish retained customers from inflows and departures. The catalog therefore cannot establish the degree of customer dependency.
erosion resilience · — · Interchange regulation and external network rate-setting identify channels of potential erosion. Recent profitability does not show that Capital One has preserved a specific competitive advantage through those pressures. The supplied passages lack a sufficiently observed response to establish erosion resilience.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · The deposit rate paid increased three basis points to 2.94%, an observed funding-price outcome. However, the catalog does not isolate lending repricing or network fees from balance, mix and acquisition effects. Net interest margin measures spread performance rather than realized customer pricing by itself.
retention · 2/4 · September deposits remained above December and prior-year levels but declined sequentially, as did average deposits. This is indirect, mixed evidence of continuing demand rather than a customer retention rate. It supports an assessment of ongoing usage without demonstrating strong switching friction or price-insensitive loyalty.
margin resilience · 2/4 · Third-quarter net interest margin reached 8.41%, and efficiency improved sequentially. Quarterly efficiency remained slightly worse year over year, while nine-month operating efficiency also weakened slightly. Uncollectible finance charges reduce revenue. These demonstrate mixed resilience without isolating acquisition-independent pricing protection.
contractual freedom · 1/4 · Credit interchange on named external networks is set by those networks. Regulation II limits fees and imposes routing requirements for covered four-party debit transactions, with the disclosed scope excluding the Global Payment Network. These establish constrained payments pricing freedom; comprehensive lending repricing terms are absent.
Predictability81
Financial-sector stability over 5 consecutive reported annual periods: equal weights for nondeclining revenue frequency, revenue-growth volatility (5–40pp), positive consolidated earnings frequency, and net-income/revenue margin volatility (3–20pp). Uses reported accounting scope; not industrial FCF or a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 12.29
- positiveEarningsShare
- 100.00
- netMarginStdDev
- 12.36
- observedAnnualPeriods
- 5.00
Financial strength56
Qualitative bank assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.
capital adequacy · 3/4 · June company and CONA CET1 ratios were 13.7% and 13.2%, with broader capital ratios above disclosed minimum benchmarks. Preliminary September company CET1 was 13.8%. These support strong reported capitalization, but missing applicable stress-buffer details prevent a precise current headroom calculation or an exceptional assessment.
liquidity funding · 2/4 · September deposits of $480.7 billion provided the principal funding base and exceeded December and prior-year balances. Deposits fell sequentially while period-end borrowings increased. This supports substantial funding capacity with mixed recent movement; insured-deposit composition, available liquidity and current coverage ratios are absent.
asset liability risk · 2/4 · Third-quarter consolidated charge-off rates improved, while performing delinquency rose from June. Revenue also absorbs uncollectible finance charges outside the displayed charge-off measure. Asset-liability repricing mismatch is disclosed, but quantified sensitivity is absent. Credit outcomes are mixed and do not establish low overall balance-sheet risk.
earnings resilience · 2/4 · Preliminary third-quarter net income was $3.539 billion versus $3.192 billion a year earlier; nine-month net income reached $8.733 billion. Earnings improved across recent quarters, but prior-year comparisons include sharply different provisions, and the latest quarter included a reserve release. Through-cycle resilience remains unestablished.
Capital allocation50
Qualitative bank assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.
capital efficiency · 2/4 · Reported consolidated return on average common equity improved to 12.62% in the third quarter and 10.34% for nine months. Tangible returns were higher but exclude part of the acquisition capital base. Recent recovery supports mixed efficiency evidence without establishing durable productivity of total capital deployed.
distributions and buffers · 2/4 · Common dividends paid totaled $2.40 per share for nine months alongside positive common earnings. Shares outstanding declined, and preliminary September CET1 improved slightly from June while remaining below December. Distributions and buffers are observable, but complete repurchase expenditure and applicable stress-buffer requirements are absent.
dilution and cost · 2/4 · Brex consideration included 10.6 million shares and $2.6 billion cash, followed by $1.1 billion debt repayment. September shares outstanding declined to 601.5 million, demonstrating offsets to issuance. Nine-month weighted-average diluted shares remained higher year over year; total compensation cost and financing accretion are incompletely established.
investment discipline · 2/4 · The acquired network is operating, and Brex closed with disclosed cash, equity and debt-repayment costs. Both acquisitions continued to incur integration expenses. These establish actual commitments and implementation, but the catalog does not separate acquisition returns from existing operations or demonstrate returns sufficient to justify purchase costs.
Management50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Brex required $4.5 billion in consideration plus repayment of $1.1 billion of acquired debt. Earnings improved, shares declined and capital remained substantial, although CET1 was below December. Deployment and financing outcomes are observable; acquisition returns and a complete distribution-cost assessment remain incomplete.
incentive alignment · 2/4 · Approved CEO performance shares use a three-year period with financial and relative-return measures. Executives reportedly comply with ownership requirements and must retain part of vested equity. These are implemented alignment mechanisms, but the catalog does not establish realized payouts or consistent alignment with acquisition-adjusted economic value creation.
execution · 2/4 · Completion of Brex and continued operation of the acquired payment network demonstrate transaction delivery and operating capability. Recent earnings improved while integration expenses continued. This combines direct closing evidence with indirect operating evidence; it does not establish completed integration, successful debit migration or satisfactory acquisition returns.
governance · 2/4 · The independent Audit Committee met nine times in 2025, a cash severance threshold was adopted, and shareholders actually approved compensation on an advisory basis. These establish functioning oversight mechanisms. Meeting activity and approval do not independently demonstrate effective challenge, integrated controls or consistently favorable governance outcomes.
Evidence
Additionally, through the acquisition of Discover, we acquired new products including personal loans as well as the Discover Network, the PULSE Network, Diners Club International (“Diners Club”) and Network Partners (collectively, the “Global Payment Network”).
2025 Form 10-K, business overview: acquired Global Payment Network · Filed 19/02/2026
Table 1: Consolidated Financial Highlights
Three Months Ended June 30,
Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)
2026
2025
Change
2026
2025
Change
Income statement
Net interest income
$
12,374
$
9,995
24%
$
24,519
$
18,008
36%
Non-interest income
3,476
2,497
39
6,562
4,484
46
Total net revenue
15,850
12,492
27
31,081
22,492
38
Provision for credit losses
2,989
11,430
(74)
7,057
13,799
(49)
Non-interest expense:
Marketing
1,661
1,345
23
3,158
2,547
24
Operating expense
7,382
5,646
31
14,349
10,346
39
Total non-interest expense
9,043
6,991
29
17,507
12,893
36
Income (loss) from continuing operations before income taxes
3,818
(5,929)
**
6,517
(4,200)
**
Income tax provision (benefit)
798
(1,666)
**
1,316
(1,341)
**
Income (loss) from continuing operations, net of tax
3,020
(4,263)
**
5,201
(2,859)
**
Income (loss) from discontinued operations, net of tax
—
(14)
**
(7)
(14)
(50)
Net income (loss)
3,020
(4,277)
**
5,194
(2,873)
**
Dividends and undistributed earnings allocated to participating securities
(28)
(4)
**
(48)
(9)
**
Preferred stock dividends
(57)
(65)
(12)
(130)
(122)
7
Discount on redeemed preferred stock
—
6
**
—
6
**
Net income (loss) available to common stockholders
$
2,935
$
(4,340)
**
$
5,016
$
(2,998)
**
Common share statistics
Basic earnings per common share:
Net income (loss) from continuing operations
$
4.73
$
(8.55)
**
$
8.08
$
(6.71)
**
Income (loss) from discontinued operations
—
(0.03)
**
(0.01)
(0.03)
(67)%
Net income (loss) per basic common share
$
4.73
$
(8.58)
**
$
8.07
$
(6.74)
**
Diluted earnings per common share:
Net income (loss) from continuing operations
$
4.73
$
(8.55)
**
$
8.08
$
(6.71)
**
Income (loss) from discontinued operations
—
(0.03)
**
(0.01)
(0.03)
(67)%
Net income (loss) per diluted common share
$
4.73
$
(8.58)
**
$
8.07
$
(6.74)
**
Weighted-average common shares outstanding (in millions):
Basic
620.5
505.6
23%
621.5
444.7
40%
Diluted
621.1
505.6
23
622.3
444.7
40
Common shares outstanding (period-end, in millions)
613.5
639.5
(4)
613.5
639.5
(4)
6
Capital One Financial Corporation (COF)
Table of Contents
Three Months Ended June 30,
Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)
2026
2025
Change
2026
2025
Change
Dividends declared and paid per common share
$
0.80
$
0.60
33%
$
1.60
$
1.20
33%
Tangible book value per common share (period-end)(1)
105.21
99.35
6
105.21
99.35
6
Balance sheet (average balances)
Loans held for investment
$
450,679
$
378,157
19%
$
448,469
$
350,425
28%
Interest-earning assets
617,583
524,929
June 2026 Form 10-Q, Table 1: dated consolidated financial highlights and table context · Filed 28/07/2026
18
617,378
494,022
25
Total assets
682,079
572,446
19
679,050
532,354
28
Interest-bearing deposits
458,130
387,139
18
455,060
362,626
25
Total deposits
486,791
414,568
17
483,393
389,462
24
Borrowings
49,092
46,601
5
50,710
45,531
11
Common equity
109,111
81,563
34
109,130
69,546
57
Total stockholders’ equity
114,518
86,918
32
114,537
74,647
53
Selected performance metrics
Purchase volume
$
253,750
$
201,453
26%
$
474,290
$
359,401
32
%
Global Payment Network volume
189,612
74,014
156
363,944
74,014
**
Total net revenue margin(2)
10.27%
9.52%
75
bps
10.07%
9.11%
96
bps
Net interest margin
8.01
7.62
39
7.94
7.29
65
Return on average assets(3)
1.77
(2.98)
475
1.53
(1.07)
260
Return on average tangible assets(4)
1.89
(3.14)
503
1.63
(1.12)
275
Return on average common equity(5)
10.76
(21.22)
3,198
9.21
(8.58)
1,779
Return on average tangible common equity(6)
18.04
(32.99)
5,103
15.05
(12.60)
2,765
Equity-to-assets ratio(7)
16.79
15.18
161
16.87
14.02
285
Efficiency ratio(8)
57.05
55.96
109
56.33
57.32
(99)
Operating efficiency ratio(9)
46.57
45.20
137
46.17
46.00
17
Effective income tax rate from continuing operations
20.9
28.1
(720)
20.2
31.9
(1,170)
Net charge-offs
$
3,642
$
3,060
19%
$
7,489
$
5,796
29%
Net charge-off rate
3.23
%
3.24
%
(1)bps
3.34
%
3.31
%
3
bps
(Dollars in millions, except as noted)
June 30, 2026
December 31, 2025
Change
Balance sheet (period-end)
Loans held for investment
$
457,168
$
453,622
1%
Interest-earning assets
610,913
613,750
—
Total assets
673,835
669,009
1
Interest-bearing deposits
456,464
448,386
2
Total deposits
484,257
475,771
2
Borrowings
45,371
51,000
(11)
Common equity
108,386
108,209
—
Total stockholders’ equity
113,793
113,616
—
Credit quality metrics
Allowance for credit losses
$
22,966
$
23,409
(2)%
Allowance coverage ratio
5.02
%
5.16
%
(14)bps
30+ day performing delinquency rate
2.91
3.41
(50)
30+ day delinquency rate
3.13
3.59
(46)
7
Capital One Financial Corporation (COF)
Table of Contents
(Dollars in millions, except as noted)
June 30, 2026
December 31, 2025
Change
Capital ratios
Common equity Tier 1 capital(10)
13.7
%
14.3
%
(60)bps
Tier 1 capital(10)
14.8
15.3
(50)
Total capital(10)
16.6
17.2
(60)
Tier 1 leverage(10)
11.8
12.5
(70)
Tangible common equity (“TCE”)(11)
10.2
10.7
(50)
Supplementary leverage(10)
10.1
10.6
(50)
Other
Employees (period-end, in thousands)
78.4
76.3
3%
__________
June 2026 Form 10-Q, Table 1 continuation: network volume, performance and balance-sheet metrics · Filed 28/07/2026
Examples include American Express, Diners Club/Discover (now owned by Capital One), JCB, Mastercard and UnionPay.
Visa competitor disclosure, competition: explicitly identifies Capital One-owned Diners Club/Discover among competing networks · Filed 06/11/2025
Legislative and regulatory bodies in a number of countries have sought, or are currently seeking, to reduce interchange fees through legislation, competition-related regulatory proceedings, voluntary agreements, central bank regulation and/or litigation.
2025 Form 10-K, interchange regulation · Filed 19/02/2026
In the United States, interchange reimbursement rates for credit card transactions are set by credit card networks such as Mastercard and Visa.
2025 Form 10-K, credit interchange rates set by external networks · Filed 19/02/2026
In the United States, the Federal Reserve’s Regulation II places limits on the interchange fees that issuers may charge, and requires additional routing requirements for, debit cards issued on four-party networks, such as the remaining debit cards issued by the Bank on networks other than the Global Payment Network.
2025 Form 10-K, Regulation II: covered four-party debit fees and routing requirements · Filed 19/02/2026
We were the largest issuer of credit cards in the United States of America (“U.S.”) based on the outstanding balance of credit card loans as of December 31, 2025.
2025 Form 10-K, business overview: credit-card loan-balance scale at December 31, 2025 · Filed 19/02/2026
•Period-end total deposits decreased $3.6 billion, or 1 percent, to $480.7 billion, while average deposits decreased $4.2 billion, or 1 percent, to $482.6 billion.
Third-quarter 2026 earnings release, balance-sheet summary: sequential deposit changes · Filed 20/10/2026
•Interest-bearing deposits rate paid increased 3 basis points to 2.94 percent.
Third-quarter 2026 earnings release, balance-sheet summary: interest-bearing deposit rate paid · Filed 20/10/2026
2026 Q3
Nine Months Ended September 30,
(Dollars in millions, except as noted)
2026
2026
2026
2025
2025
2026
2025
2026 vs.
Third-quarter 2026 financial supplement, consolidated selected metrics: dates and units for continuation · Filed 20/10/2026
Q3
Q2
Q1
Q4
Q3
Q2
Q3
2026
2025
2025
Performance Metrics
Net interest income growth (period over period)
4
%
2
%
(3)
%
—
%
24
%
**
**
23
%
32
%
**
Non-interest income growth (period over period)
(1)
13
(1)
5
18
**
**
35
28
**
Total net revenue growth (period over period)
3
4
(2)
1
23
**
**
25
31
**
Total net revenue margin(4)
10.67
10.27
9.87
10.32
10.36
40bps
31bps
10.27
9.57
70bps
Net interest margin(5)
8.41
8.01
7.87
8.26
8.36
40
5
8.10
7.69
41
Return on average assets(6)
2.09
1.77
1.29
1.05
1.94
32
15
1.72
0.08
164
Return on average tangible assets(7)
2.24
1.89
1.37
1.12
2.07
35
17
1.83
0.08
175
Return on average common equity(8)
12.62
10.76
7.65
6.10
11.50
186
112
10.34
0.21
1,013
Return on average tangible common equity(9)
21.12
18.04
12.20
9.74
18.82
308
230
17.04
0.33
1,671
Efficiency ratio(10)
54.19
57.05
55.57
59.95
53.80
(286)
39
55.59
55.89
(30)
Operating efficiency ratio(11)
44.43
46.57
45.74
47.54
44.66
(214)
(23)
45.57
45.46
11
Effective income tax rate for continuing operations
22.6
20.9
19.2
16.4
27.1
170
(450)
21.2
(83.5)
**
Employees (period-end, in thousands)
77.5
78.4
77.1
76.3
77.0
(1)%
1%
77.5
77.0
1%
Credit Quality Metrics
Allowance for credit losses
$
22,739
$
22,966
$
23,630
$
23,409
$
23,103
(1)%
(2)%
$
22,739
$
23,103
(2)%
Allowance coverage ratio
4.92
%
5.02
%
5.28
%
5.16
%
5.21
%
(10)
bps
(29)
bps
4.92
%
5.21
%
(29)
bps
Net charge-offs
$
3,121
$
3,642
$
3,847
$
3,833
$
3,473
(14)%
(10)%
$
10,610
$
9,269
14%
Net charge-off rate(12)
2.73
%
3.23
%
3.45
%
3.45
%
3.16
%
(50)
bps
(43)
bps
3.13
%
3.25
%
(12)
bps
30+ day performing delinquency rate
3.18
2.91
3.04
3.41
3.29
27
(11)
3.18
3.29
(11)
30+ day delinquency rate
3.41
3.13
3.24
3.59
3.50
28
(9)
3.41
3.50
(9)
Capital Ratios(13)
Common equity Tier 1 capital
13.8
%
13.7
%
14.4
%
14.3
%
14.4
%
10bps
(60)
bps
13.8
%
14.4
%
(60)
bps
Tier 1 capital
14.6
14.8
15.4
15.3
15.5
(20)
(90)
14.6
15.5
(90)
Total capital
16.5
16.6
17.3
17.2
17.3
(10)
(80)
16.5
17.3
(80)
Tier 1 leverage
11.9
11.8
12.2
12.5
12.6
10
(70)
11.9
12.6
(70)
Tangible common equity (“TCE”)(14)
9.8
10.2
10.3
10.7
10.8
(40)
(100)
9.8
10.8
(100)
Third-quarter 2026 financial supplement, consolidated selected metrics: returns, margins, efficiency, credit quality and capital · Filed 20/10/2026
Table 1: Financial Summary—Consolidated
2026 Q3
Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted)
2026
2026
2026
2025
2025
2026
2025
2026 vs.
Third-quarter 2026 financial supplement, Table 1: consolidated financial-summary dates and units · Filed 20/10/2026
Q3
Q2
Q1
Q4
Q3
Q2
Q3
2026
2025
2025
Income Statement
Net interest income
$
12,886
$
12,374
$
12,145
$
12,466
$
12,404
4%
4%
$
37,405
$
30,412
23%
Non-interest income
3,458
3,476
3,086
3,117
2,955
(1)
17
10,020
7,439
35
Total net revenue(1)
16,344
15,850
15,231
15,583
15,359
3
6
47,425
37,851
25
Provision for credit losses
2,916
2,989
4,068
4,142
2,714
(2)
7
9,973
16,513
(40)
Non-interest expense:
Marketing
1,594
1,661
1,497
1,934
1,403
(4)
14
4,752
3,950
20
Operating expense
7,262
7,382
6,967
7,408
6,860
(2)
6
21,611
17,206
26
Total non-interest expense
8,856
9,043
8,464
9,342
8,263
(2)
7
26,363
21,156
25
Income from continuing operations before income taxes
4,572
3,818
2,699
2,099
4,382
20
4
11,089
182
**
Income tax provision (benefit)
1,033
798
518
345
1,189
29
(13)
2,349
(152)
**
Income from continuing operations, net of tax
3,539
3,020
2,181
1,754
3,193
17
11
8,740
334
**
Income (loss) from discontinued operations, net of tax
—
—
(7)
380
(1)
—
**
(7)
(15)
(53)
Net income
3,539
3,020
2,174
2,134
3,192
17
11
8,733
319
**
Dividends and undistributed earnings allocated to participating securities(2)
(32)
(28)
(20)
(20)
(33)
14
(3)
(80)
(13)
**
Preferred stock dividends
(73)
(57)
(73)
(57)
(73)
28
—
(203)
(195)
4%
Impacts from preferred stock redemptions
(12)
—
—
—
—
**
**
(12)
6
**
Net income available to common stockholders
$
3,422
$
2,935
$
2,081
$
2,057
$
3,086
17%
11%
$
8,438
$
117
**
Common Share Statistics
Basic earnings per common share:(2)
Third-quarter 2026 financial supplement, Table 1: consolidated income statement · Filed 20/10/2026
Net income from continuing operations
$
5.61
$
4.73
$
3.35
$
2.66
$
4.83
19%
16%
$
13.66
$
0.26
**
Income (loss) from discontinued operations
—
—
(0.01)
0.60
—
—
—
(0.01)
(0.03)
(67)%
Net income per diluted common share
$
5.61
$
4.73
$
3.34
$
3.26
$
4.83
19%
16%
$
13.65
$
0.23
**
Weighted-average common shares outstanding (in millions):
Basic
608.9
620.5
622.5
631.1
639.0
(2)%
(5)%
617.2
510.2
21%
Diluted
609.5
621.1
623.4
631.6
639.5
(2)
(5)
618.0
510.9
21
Common shares outstanding (period-end, in millions)
601.5
613.5
615.9
625.1
635.7
(2)
(5)
601.5
635.7
(5)
Dividends declared and paid per common share
$
0.80
$
0.80
$
0.80
$
0.80
$
0.60
—
33
$
2.40
$
1.80
33
Tangible book value per common share (period-end)(3)
102.72
105.21
107.76
107.72
105.18
(2)%
(2)%
102.72
105.18
(2)%
1
2026 Q3
Nine Months Ended September 30,
(Dollars in millions)
2026
2026
2026
2025
2025
2026
2025
2026 vs.
Third-quarter 2026 financial supplement, Table 1 continuation: diluted earnings, shares and dividends · Filed 20/10/2026
Q3
Q2
Q1
Q4
Q3
Q2
Q3
2026
2025
2025
Balance Sheet (Period-End)
Loans held for investment
$
462,530
$
457,168
$
447,754
$
453,622
$
443,159
1%
4%
$
462,530
$
443,159
4%
Interest-earning assets
610,799
610,913
624,560
613,750
605,235
—
1
610,799
605,235
1
Total assets
672,867
673,835
682,905
669,009
661,877
—
2
672,867
661,877
2
Interest-bearing deposits
453,006
456,464
461,117
448,386
441,136
(1)
3
453,006
441,136
3
Total deposits
480,697
484,257
489,053
475,771
468,785
(1)
3
480,697
468,785
3
Borrowings
49,774
45,371
51,888
51,000
51,482
10
(3)
49,774
51,482
(3)
Common equity
105,237
108,386
106,854
108,209
108,406
(3)
(3)
105,237
108,406
(3)
Total stockholders’ equity
109,656
113,793
112,261
113,616
113,813
(4)
(4)
109,656
113,813
(4)
Balance Sheet (Average Balances)
Loans held for investment
$
457,380
$
450,679
$
446,235
$
444,680
$
439,859
1%
4%
$
451,472
$
380,564
19%
Interest-earning assets
612,521
617,583
617,173
603,730
593,247
(1)
3
615,741
527,461
17
Total assets
676,168
682,079
675,999
665,656
657,858
(1)
3
678,056
574,602
18
Interest-bearing deposits
454,245
458,130
451,957
442,763
439,527
(1)
3
454,785
388,541
17
Total deposits
482,613
486,791
479,958
470,965
467,280
(1)
3
483,130
415,686
16
Borrowings
48,061
49,092
52,348
50,814
50,180
(2)
(4)
49,818
47,097
6
Common equity
108,486
109,111
109,149
109,997
107,412
(1)
1
108,913
82,306
32
Total stockholders’ equity
113,571
114,518
114,556
115,404
112,819
(1)
1
114,211
87,511
31
2
CAPITAL ONE FINANCIAL CORPORATION (COF)
Third-quarter 2026 financial supplement, Table 1 continuation: period-end and average balance sheets · Filed 20/10/2026
Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)
20
Table 15:
Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures
21
Table 16:
Notes to Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures (Table 15)
26
__________
(1)The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation.
Third-quarter 2026 financial supplement, introductory note: preliminary information · Filed 20/10/2026
(1)Total net revenue was reduced by $784 million in Q3 2026, $898 million in Q2 2026, $980 million in Q1 2026, $941 million in Q4 2025 and $869 million in Q3 2025 for credit card finance charges and fees charged off as uncollectible.
Third-quarter 2026 financial supplement, note 1: revenue reductions for uncollectible credit-card finance charges and fees · Filed 20/10/2026
June 30, 2026
December 31, 2025
Ratio
Minimum
Capital
Adequacy
Well-
Capitalized
Ratio
Minimum
Capital
Adequacy
Well-
Capitalized
Capital One Financial Corp:
Common equity Tier 1 capital(3)
13.7
%
4.5
%
N/A
14.3
%
4.5
%
N/A
Tier 1 capital(4)
14.8
6.0
6.0
%
15.3
6.0
6.0
%
Total capital(5)
16.6
8.0
10.0
17.2
8.0
10.0
Tier 1 leverage(6)
11.8
4.0
N/A
12.5
4.0
N/A
Supplementary leverage(7)
10.1
3.0
N/A
10.6
3.0
N/A
CONA:
Common equity Tier 1 capital(3)
13.2
4.5
6.5
13.4
4.5
6.5
Tier 1 capital(4)
13.2
6.0
8.0
13.4
6.0
8.0
Total capital(5)
14.9
8.0
10.0
15.1
8.0
10.0
Tier 1 leverage(6)
10.6
4.0
5.0
10.9
4.0
5.0
Supplementary leverage(7)
9.0
3.0
N/A
9.3
3.0
N/A
June 2026 Form 10-Q, regulatory capital table: company and CONA ratios and minimum benchmarks · Filed 28/07/2026
The total consideration paid to Brex shareholders for the acquisition was approximately $4.5 billion and included $2.6 billion of cash consideration and 10.6 million shares of common stock, par value $0.01 per share, of the Company with a fair value of $1.9 billion.
June 2026 Form 10-Q, Brex acquisition: total cash and share consideration · Filed 28/07/2026
Immediately following the completion of the Brex acquisition, the Company paid off Brex’s outstanding debt of $1.1 billion.
June 2026 Form 10-Q, Brex acquisition: repayment of acquired debt · Filed 28/07/2026
On April 7, 2026, Capital One Financial Corporation (the “Company”), completed its previously announced acquisition of Brex Inc., a Delaware corporation (“Brex” and such acquisition, the “Transaction”), pursuant to the terms of an Agreement and Plan of Merger and Reorganization, dated as of January 22, 2026 (the “Merger Agreement”) with Brex and certain other parties thereto.
April 7, 2026 Form 8-K, completed Brex acquisition and closing date · Filed 07/04/2026
(Dollars in millions, except per share data)
Pre-Tax Impact
After-Tax Diluted EPS Impact
Acquisition amortization expenses(2)
$
483
$
0.60
Discover integration expenses
$
338
$
0.42
Brex integration expenses
$
47
$
0.06
Capital One Third Quarter 2026 Earnings
Page 2
All comparisons below are for the third quarter of 2026 compared with the second quarter of 2026 unless otherwise noted.
Third-quarter 2026 earnings release: acquisition amortization and integration expenses · Filed 20/10/2026
The CEO and all other NEOs are currently in compliance with this requirement.
March 2026 proxy, executive stock ownership: disclosed compliance · Filed 25/03/2026
With respect to awards of performance shares and stock-settled RSUs that vest (i) during an executive’s term of employment with Capital One, or (ii) as applicable, prior to the first anniversary of such executive’s separation from Capital One, each executive must hold 50% of the after-tax net shares acquired (“Retained Shares”) for a period of one year after the acquisition date of the shares.
March 2026 proxy, executive equity retention: percentage, scope and holding period · Filed 25/03/2026
Fairbank may receive from 0% to 150% of a total target number of 111,043 shares of the Company’s common stock based on the Company’s performance over the three-year performance period from January 1, 2026 through December 31, 2028 (“Performance Period”).
February 2026 compensation Form 8-K: approved CEO performance-share award range and 2026–2028 performance period · Filed 06/02/2026
Approximately $22.1 million of the CEO Performance Shares (the “Financial PSUs”) will vest based on the Company’s performance against a combination of two metrics: Common Dividends plus Growth of Tangible Book Value per share (“Growth of Shareholder Value”) and Adjusted Return on Tangible Common Equity (“Adjusted ROTCE”) and approximately $2.7 million of the CEO Performance Shares will vest based entirely on the Company’s total shareholder return (“TSR”) relative to the Company’s peers over the Performance Period (the “TSR PSUs”), as previously described in the Proxy Statement for the 2025 Annual Stockholder Meeting (the “2025 Proxy Statement”).
February 2026 compensation Form 8-K: CEO performance-share financial and relative-return metrics · Filed 06/02/2026
In carrying out its responsibilities, the Audit Committee met a total of nine times during 2025.
March 2026 proxy, Audit Committee: actual 2025 meeting activity · Filed 25/03/2026
Pursuant to Capital One’s Corporate Governance Guidelines and applicable law, the Audit Committee is comprised solely of independent directors.
March 2026 proxy, Audit Committee: independent membership · Filed 25/03/2026
Cash Severance Policy
2
On February 3, 2026, the Committee and the Independent Directors adopted an Executive Officer Cash Severance Policy (the “Cash Severance Policy”), effective as of March 1, 2026.
February 2026 Form 8-K: adoption and effective date of cash severance policy · Filed 06/02/2026
The Cash Severance Policy provides that the Company will not enter into any new employment agreement or severance agreement with any Named Executive Officer or establish any new severance plan or policy covering any Named Executive Officer that provides for cash severance benefits exceeding 2.99 times the sum of the executive’s Base Salary plus Target Bonus (as such terms are defined in the Cash Severance Policy), without seeking stockholder ratification of such agreement, plan, or policy.
February 2026 Form 8-K: cash severance threshold requiring shareholder ratification · Filed 06/02/2026
(2) Stockholders approved, on an advisory basis, the Company’s 2025 named executive officer compensation;
May 8, 2026 Form 8-K: actual advisory approval of executive compensation · Filed 08/05/2026
We are exposed to interest rate risk primarily from the differences in the timing between the maturities or repricing of assets and liabilities.
June 2026 Form 10-Q, interest-rate risk: asset and liability repricing mismatch · Filed 28/07/2026
◦$225 million loan reserve release.
Third-quarter 2026 earnings release: loan reserve release · Filed 20/10/2026
