Capital One Financial : Q1 2026 Q1 2026 Presentation

Published: 2026-04-21 16:30:18 ET COF

Published on 04/21/2026 at 04:30 pm EDT

April 21, 2026

Net income of $2.2 billion, or $3.34 per diluted common share

Adjusted net income per diluted common share(1) of $4.42

Pre-provision earnings(1) increased 8% to $6.8 billion

Net interest margin decreased 39 bps to 7.87%

Provision for credit losses of $4.1 billion

Efficiency ratio of 55.57%

Adjusted efficiency ratio(1) of 49.71%

Operating efficiency ratio of 45.74%

Adjusted operating efficiency ratio(1) of 39.88%

The quarter included the following adjusting items:

(Dollars in millions, except per share data)

Pre-Tax Impact

After-Tax Diluted EPS Impact

Discover amortization expenses

$ 477

$ 0.58

Discover integration expenses

$ 415

$ 0.50

Common equity Tier 1 capital ratio under Basel III Standardized Approach of 14.4% at March 31, 2026

Tangible book value per share(1) remained substantially flat at $107.76

Period-end loans held for investment decreased 1%, or $5.9 billion, to $447.8 billion

Average loans held for investment increased less than 1%, or $1.6 billion, to $446.2 billion

Period-end total deposits increased $13.3 billion to $489.1 billion

Period-end insured deposits of $415.4 billion, 85% of total deposits

Average total deposits increased $9.0 billion to $480.0 billion

Note: All comparisons are for the first quarter of 2026 compared with the fourth quarter of 2025 unless otherwise noted. Regulatory capital metrics and capital ratios as of March 31, 2026 are preliminary and therefore subject to change.

(1) This is a non-GAAP measure. See appendix slides for the reconciliation of non-GAAP measures to our reported results.

(Dollars in millions)

Credit Consumer Commercial Total Card Banking Banking

Allowance for credit losses:

Balance as of December 31, 2025

$ 20,066

$ 1,892

$ 1,451

$ 23,409

Charge-offs

(4,641)

(735)

(69)

(5,445)

Recoveries

1,222

371

1,598

Net charge-offs

(3,419)

(364)

(64)

(3,847)

Provision for credit losses(1)

3,411

519

147

4,077

Allowance build/(release) for credit losses

(8)

155

230

Other changes(2)

(9)

Balance as of March 31, 2026

$ 20,049

$ 2,047

$ 1,534

$ 23,630

Allowance coverage ratio as of March 31, 2026

7.41%

2.36%

1.70%

5.28%

Allowance build of $230 million primarily driven by builds in our Auto and Commercial businesses

Allowance coverage ratio of 5.28% at March 31, 2026, compared to 5.16% at December 31, 2025

(1) Does not include $(9) million of provision (benefit) related to unfunded lending commitments that is recorded in other liabilities in Commercial Banking.

(2) Primarily represents foreign currency translation adjustments.

Credit Card

$12,510

$8,331

7.96%

7.28%

7.41%

7.18%

7.59%

$20,841 $20,474 $19,727 $20,066 $20,049

Domestic Card

$19,596 $19,229

$12,036

8.01%

7.40%

7.17%

7.28%

7.62%

$7,560

$18,476 $18,811 $18,806

03/31/25

03/31/25 + DFS

06/30/25

09/30/25

12/31/25

03/31/26

03/31/25

3/31/25 + DFS

06/30/25

09/30/25

12/31/25

03/31/26

LD-1 ACL(1)

Consumer Banking Commercial Banking

2.36%

2.37%

2.29%

2.26%

2.23%

$1,872 $1,864 $1,878 $1,892

$2,047

1.70%

1.63%

1.69%

1.74%

1.73%

$1,517 $1,535 $1,498 $1,451 $1,534

03/31/25 06/30/25 09/30/25 12/31/25 03/31/26 03/31/25 06/30/25 09/30/25 12/31/25 03/31/26

(1) DFS LD-1 ACL refers to the initial allowance build related to loans acquired as part of the Discover Acquisition on May 18, 2025.

⭫ 14% Q/Q

⭫ 26% Y/Y

164,766

143,946

143,071

143,972

131,084

161%

166%

152%

157%

173%

1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q25 4Q25 1Q26

Liquidity Coverage Ratio

Average quarterly Liquidity Coverage Ratio of 166%

Total liquidity reserves of $164.8 billion as of March 31, 2026

$76.5 billion in cash and cash equivalents

Note: The Q1'26 Liquidity Coverage Ratio is preliminary and therefore subject to change.

(1) Amount below represents unencumbered liquidity reserves. Securities pledged and eligible to secure FHLB borrowing capacity are presented within investment securities below.

⭭ 3% Q/Q NII

⭫ 52% Y/Y NII

$9,995

$8,013

6.93%

7.62%

7.87%

8.26%

8.36%

$12,404 $12,466 $12,145

1Q25 2Q25 3Q25 4Q25 1Q26

Net interest margin decreased 39 bps quarter-over-quarter primarily driven by lower day count, higher average cash balances and lower average credit card loans

Net interest margin increased 94 bps year-over-year primarily driven by the impact of the Discover Acquisition

(Dollars in millions)

Amount

Ratio

Common equity Tier 1 ("CET1") as of December 31, 2025 $ 73,048

14.3%

Q1 2026 Net Income

2,174

43 bps

Common & Preferred Stock Dividends(1)

(578)

(11)bps

Share Repurchases

(2,500)

(50)bps

14.4% 14.3% 14.4%

13.6% 14.0%

Adjustments for goodwill and intangibles(2)

379

8 bps

Net issuances of employee stock

(21)

- bps

Other quarterly activities

(42)

(2)bps

Risk Weighted Assets changes

N/A

21 bps

CET1 as of March 31, 2026 $ 72,460 14.4%

1Q25 2Q25 3Q25 4Q25 1Q26

Well-capitalized with CET1 capital ratio of 14.4% as of March 31, 2026

Repurchased 12.1 million common shares for $2.5 billion in the first quarter of 2026

Note: Regulatory capital metrics and capital ratios as of March 31, 2026 are preliminary and therefore subject to change.

(1) Includes $570 million of cash dividends and $8 million of dividend-equivalents associated with employee stock awards.

(2) Primarily represents quarterly intangible amortization, net of deferred tax liability.

(Dollars in millions)

Three Months Ended March 31, 2026

Credit Card

Consumer Commercial Banking Banking

Other

Total

Net interest income

$ 9,236 $

2,229 $

581 $

99 $

12,145

Non-interest income (loss)

2,153

683

328

(78)

3,086

Total net revenue

11,389

2,912

909

15,231

Provision for credit losses

3,411

519

138

4,068

Non-interest expense

5,501

1,998

498

467

8,464

Income (loss) from continuing operations before income taxes

2,477

395

273

(446)

2,699

Income tax provision (benefit)

608

(254)

518

Income (loss) from continuing operations, net of tax

$ 1,869

$ 298

$ 206

$ (192)

$ 2,181

2026

2025

2026 Q1

2025

First Quarter 2026 Highlights

(Dollars in millions, except as noted)

Earnings:

Ending loans held for investment up

$113.4 billion, or 72%, year-over-year;

Net interest income

$ 9,236

$ 9,479

$ 5,654

(3)%

63%

average loans held for investment up

Non-interest income

2,153

2,214

1,511

(3)

Total net revenue

11,389

11,693

7,165

(3)

Purchase volume up 40% year-over-year

Provision for credit losses

3,411

3,678

1,926

(7)

Revenue up $4.2 billion, or 59%, year-

Non-interest expense

5,501

6,147

3,638

(11)

over-year

Pre-tax income

2,477

1,868

1,601

Revenue margin of 16.81%

Selected performance metrics:

$114.6 billion, or 73%, year-over-year

Period-end loans held for investment

$ 270,558

$ 279,570

$ 157,189

(3)%

72%

Average loans held for investment

Total net revenue margin

270,974

16.81%

272,228

17.18%

156,407

18.32%

(37)bps

(151)bps

•

Non-interest expense up $1.9 billion or 51% year-over-year

Provision for credit losses up $1.5 billion year-over-year

Net charge-off rate

5.05

4.91

6.14

(109)

Purchase volume

$ 220,540

$ 238,687

$ 157,948

(8)%

40%

Net charge-off rate of 5.05%

(Dollars in millions, except as noted)

2026 Q1

2026 2025 2025 2025 2025

Q1 Q4 Q1 Q4 Q1

Earnings:

•

Net interest income

$8,618

$8,854

$5,343

(3)%

61%

Non-interest income

2,107

2,168

1,460

(3)

Total net revenue

10,725

11,022

6,803

(3)

•

Provision for credit losses

3,236

3,482

1,856

(7)

•

Non-interest expense

5,179

5,789

3,422

(11)

Pre-tax income

2,310

1,751

1,525

•

Selected performance metrics:

•

Ending loans held for investment up $103.7 billion, or 69%, year-over-year; average loans held for investment up $104.4 billion, or 70%, year-over-year

Purchase volume up 40% year-over-year

Revenue up $3.9 billion, or 58%, year-over-year

Revenue margin of 16.89%

Period-end loans held for investment

$254,028

$262,403

$150,309

(3)%

69%

Average loans held for investment

254,036

255,221

149,639

Total net revenue margin

16.89%

17.28%

18.19%

(39)bps

(130)bps

Net charge-off rate

5.10

4.93

6.19

(109)

30+ day performing delinquency rate

3.70

3.99

4.25

(29)

(55)

Purchase volume

$216,513

$234,375

$154,391

(8)%

40%

Non-interest expense up $1.8 billion, or 51%, year-over-year

Provision for credit losses up $1.4 billion year-over-year

Net charge-off rate of 5.10%

30+ day performing delinquency rate of 3.70%

Earnings:

(Dollars in millions, except as noted)

2025

2026

2026 Q1

Net interest income

$ 2,229

$ 2,296

$ 1,943

(3)%

15%

Non-interest income

683

623

183

Total net revenue

2,912

2,919

2,126

Provision for credit losses

519

409

301

Non-interest expense

1,998

2,289

1,581

(13)

Pre-tax income

395

221

244

Selected performance metrics:

Period-end loans held for investment

$ 86,873

$ 84,790

$ 78,896

10%

Average loans held for investment

85,701

83,957

78,480

Auto loan originations

11,130

10,194

9,210

Period-end deposits

438,034

423,932

324,920

Average deposits

428,391

418,673

319,950

Ending loans held for investment up $8.0 billion or 10% year-over-year; average loans held for investment up $7.2 billion, or 9%, year-over-year

Ending deposits up $113.1 billion, or 35%, year-over-year

Auto loan originations up $1.9 billion, or 21%, year-over-year

Revenue up $786 million, or 37%, year-over-year

Non-interest expense up $417 million, or 26%, year-over-year

Provision for credit losses up $218 million year-over-year

Average deposits interest rate of 2.84%

Average deposits interest rate

2.84%

2.98%

3.00%

(14)bps

(16)bps

Net charge-off rate

1.70

1.88

1.60

(18)

Net charge-off rate of 1.70%

Global Payment Network volume $174,332 $ 174,644 - - **

Global Payment Network volume of

$174.3 billion

(Dollars in millions, except as noted)

2026 Q1

2026 2025 2025 2025 2025

Q1 Q4 Q1 Q4 Q1

Earnings:

Net interest income

$ 581

$ 574

$ 572

Non-interest income

328

356

312

(8)

Total net revenue

909

930

884

(2)

Provision for credit losses

138

142

151

(3)

Non-interest expense

498

504

486

(1)

Pre-tax income

273

371

256

(26)

Selected performance metrics:

Period-end loans held for investment

$ 90,323

$ 89,262

$ 87,513

Average loans held for investment

89,560

88,495

87,498

Period-end deposits

31,007

31,250

29,984

(1)

Average deposits

31,137

31,462

31,654

(1)

(2)

Average deposits interest rate

1.83%

1.96%

2.13%

(13)bps

(30)bps

Net charge-off rate

0.29

0.43

0.11

(14)

Risk category as a percentage of period-end loans held for investment:(1)

Ending loans held for investment up $1.1 billion, or 1%, quarter-over-quarter and average loans held for investment up

$1.1 billion, or 1%, quarter-over-quarter

Ending deposits down $243 million, or 1%, quarter-over-quarter; average deposits down $325 million, or 1%, quarter-over-quarter

Revenue down $21 million, or 2%, quarter-over-quarter

Non-interest expense down $6 million, or 1%, quarter-over-quarter

Provision for credit losses up $83 million quarter-over-quarter

Net charge-off rate of 0.29%

Criticized performing

4.99%

4.68%

6.41%

31bps

(142)bps

Criticized nonperforming

1.40

1.36

1.40

Criticized performing loan rate of 4.99% and criticized nonperforming loan rate of 1.40%

(1) Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities.

The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results, however, they may not be comparable to similarly-titled measures reported by other companies. These adjusted results provide alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.

2026

2025

(Dollars in millions, except per share data and as noted)

Adjusted diluted earnings per share ("EPS"):

Net income (loss) available to common stockholders (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 2,081

$ 2,057

$ 3,086

$ (4,340)

$ 1,325

Discover amortization expenses

477

546

603

340

Discover integration expenses

415

352

348

299

110

Initial allowance build for Discover non-PCD loans

8,767

Legal reserve activities

117

198

Gain on sale of home loan portfolio

(483)

FDIC special assessment

(29)

Adjusted net income available to common stockholders before income tax impacts (non-GAAP) . . . . . . . . . . . . . . . . . . . . . . . . .

2,973

2,560

4,037

5,107

1,633

Income tax impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(221)

(124)

(236)

(2,339)

(76)

Adjusted net income available to common stockholders (non-GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 2,752

$ 2,436

$ 3,801

$ 2,768

$ 1,557

Diluted weighted-average common shares outstanding (in millions) (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

623.4

631.6

639.5

505.6

384.0

Diluted EPS (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 3.34

$ 3.26

$ 4.83

$ (8.58)

$ 3.45

Impact of adjustments noted above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.08

0.60

1.12

14.06

0.61

Adjusted diluted EPS (non-GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 4.42

$ 3.86

$ 5.95

$ 5.48

$ 4.06

The following summarizes our non-GAAP measures. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the operating performance and capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following table presents reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.

2026

2025

(Dollars in millions)

Adjusted net revenue:

Total net revenue (GAAP)

$ 15,231

$ 15,583

$ 15,359

$ 12,492

$ 10,000

Discover amortization expenses

(1)

105

Adjusted net revenue (non-GAAP)

$ 15,230

$ 15,620

$ 15,464

$ 12,577

$ 10,000

Adjusted efficiency ratio:

Non-interest expense (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 8,464

$ 9,342

$ 8,263

$ 6,991

$ 5,902

Discover amortization expenses

(478)

(509)

(498)

(255)

Discover integration expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(415)

(352)

(348)

(299)

(110)

Legal reserve activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(117)

(41)

(198)

FDIC special assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjusted non-interest expense (non-GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,571

8,393

7,417

6,396

5,594

Adjusted net revenue (non-GAAP)

$ 15,230

$ 15,620

$ 15,464

$ 12,577

$ 10,000

Efficiency ratio (GAAP)

55.57%

59.95%

53.80%

55.96%

59.02%

Impact of adjustments noted above

(586)bps

(622)bps

(584)bps

(511)bps

(308)bps

Adjusted efficiency ratio (non-GAAP)

49.71%

53.73%

47.96%

50.85%

55.94%

Adjusted operating efficiency ratio:

Operating expense (GAAP)

6,967

7,408

6,860

5,646

4,700

Discover amortization expenses

(478)

(509)

(498)

(255)

Discover integration expenses

(415)

(352)

(348)

(299)

(110)

Legal reserve activities

(117)

(41)

(198)

FDIC special assessment

Adjusted operating expense (non-GAAP)

$ 6,074

$ 6,459

$ 6,014

$ 5,051

$ 4,392

Adjusted net revenue (non-GAAP)

15,230

15,620

15,464

12,577

10,000

Operating efficiency ratio (GAAP)

45.74%

47.54%

44.66%

45.20%

47.00%

Impact of adjustments noted above

(586)bps

(619)bps

(577)bps

(504)bps

(308)bps

Adjusted operating efficiency ratio (non-GAAP)

39.88%

41.35%

38.89%

40.16%

43.92%

2026

2025

(Dollars in millions)

Pre- Provision Earnings

Total net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 15,231

$ 15,583

$ 15,359

$ 12,492

$ 10,000

Non-interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8,464)

(9,342)

(8,263)

(6,991)

(5,902)

Pre-provision earnings(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 6,767

$ 6,241

$ 7,096

$ 5,501

$ 4,098

Tangible Book Value per Common Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tangible common equity (Period-end) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 66,365

$ 67,333

$ 66,869

$ 63,537

$ 43,558

Outstanding Common Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

615.9

625.1

635.7

639.5

383.0

Tangible book value per common share(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 107.76

$ 107.72

$ 105.18

$ 99.35

$ 113.74

(1) Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

(2) Management believes that this financial metric is useful when assessing returns and capital management over time.

Disclaimer

Capital One Financial Corporation published this content on April 21, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 21, 2026 at 20:17 UTC.