Capital One Third-Quarter Net Income Rises To $3.5 Billion From $3.0 Billion In Second Quarter
Provision for credit losses eased to $2.9 billion, with a $225 million reserve release, as net interest margin reached 8.41%.
Capital One reported third-quarter net income of $3.5 billion, or $5.61 per diluted share, in an earnings release furnished with an 8-K on Tuesday. That compares with $3.0 billion, or $4.73, in the second quarter and $3.2 billion, or $4.83, in the third quarter of 2025.
What the earnings release says
Excluding adjusting items, earnings were $6.69 per diluted share, an adjusted measure. The adjustments were acquisition amortization of $483 million before tax, Discover integration expenses of $338 million and Brex integration expenses of $47 million.
Total net revenue rose 3% from the second quarter to $16.3 billion. Non-interest expense fell 2% to $8.9 billion, with marketing down 4% and operating expenses down 2%.
Pre-provision earnings, which is revenue less non-interest expense, rose 10% to $7.5 billion.
The provision for credit losses, the money set aside for bad loans, fell $73 million to $2.9 billion. That figure includes a $225 million loan reserve release. Net charge-offs, the loans written off as uncollectible net of recoveries, were $3.1 billion, down from $3.6 billion in the second quarter, according to the financial supplement.
Net interest margin rose 40 basis points, or 0.40 percentage points, to 8.41%. The efficiency ratio was 54.19%.
Balance sheet and credit detail
The preliminary common equity Tier 1 capital ratio, a regulatory measure of the capital cushion, was 13.8% at September 30, 2026. Regulatory capital figures are preliminary and subject to change.
Loans held for investment rose $5.4 billion, or 1%, to $462.5 billion. Period-end deposits fell $3.6 billion, or 1%, to $480.7 billion.
CEO Richard D. Fairbank, the company's founder and chairman, said "The Discover integration continues to go well and we’re making good progress on delivering the expected synergies."
What to watch
Capital One held its earnings call at 5:00 p.m. ET on Tuesday. A webcast replay is archived on the company's website through November 3, 2026.
The supplement says its figures are preliminary, and points readers to the quarterly 10-Q once it is filed.
Sources
- 8-K Filing — CAPITAL ONE FINANCIAL CORP (COF) — SEC EDGAR
- Exhibit ex991q32026earningsrelease.htm — CAPITAL ONE FINANCIAL CORP 8-K exhibit — SEC EDGAR
- Exhibit ex992q32026earningsrelease.htm — CAPITAL ONE FINANCIAL CORP 8-K exhibit — SEC EDGAR
- How Upcoming Earnings Will Impact Capital One Stock Investors — Yahoo Finance
- Capital One Reports Third Quarter 2026 Net Income of $3.5 billion, or $5.61 per share — businesswire.com
