Capital One third-quarter profit climbs to $5.61 a share as charge-offs ease

Capital One's third-quarter profit rose from both the prior quarter and a year ago as credit losses eased and its lending margin widened.

Net income was $3.5 billion, or $5.61 a diluted share, compared with $4.83 a share a year earlier and $4.73 in the second quarter, according to the earnings release filed with an 8-K on Tuesday. Excluding adjusting items, earnings were $6.69 a share.

Those items included $483 million of pre-tax acquisition amortization, $338 million of Discover integration expenses and $47 million of Brex integration expenses, the release said.

"The Discover integration continues to go well and we're making good progress on delivering the expected synergies," CEO Richard Fairbank said.

Credit improves

Net charge-offs fell to $3.1 billion from $3.6 billion in the second quarter, and the net charge-off rate dropped to 2.73% from 3.23% a quarter earlier and 3.16% a year ago, according to the financial supplement. Provision for credit losses was $2.9 billion, including a $225 million loan reserve release.

The 30-plus-day delinquency rate rose to 3.41% from 3.13% in the second quarter but was below 3.50% a year earlier.

Revenue and margin

Compared with the second quarter, total net revenue rose 3% to $16.3 billion and non-interest expense fell 2% to $8.9 billion. Pre-provision earnings rose 10% to $7.5 billion. Net interest margin widened 40 basis points to 8.41%.

Period-end loans held for investment grew 1% to $462.5 billion, led by a 4% gain in auto loans to $92.9 billion. Deposits slipped 1% to $480.7 billion.

Capital

The common equity Tier 1 capital ratio was a preliminary 13.8%. Period-end common shares outstanding fell to 601.5 million from 613.5 million at the end of the second quarter, and the company paid an 80-cent quarterly dividend, up from 60 cents a year earlier.

By the numbers

• Diluted EPS: $5.61, vs. $4.83 a year earlier
• Adjusted EPS: $6.69
• Total net revenue: $16.3 billion
• Net interest margin: 8.41%
• Net charge-off rate: 2.73%, vs. 3.16% a year earlier
• CET1 ratio: 13.8%

Sources

1. Capital One Financial Corporation, Form 8-K (Item 2.02) with Exhibit 99.1 earnings release and financial supplement, filed Oct. 20, 2026, accession 0000927628-26-000142

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