Capital One third-quarter net income rises to $3.5 billion, or $5.61 per share

Capital One Financial Corporation (COF) said Tuesday its third-quarter net income rose to $3.5 billion, or $5.61 per diluted share, from $3.0 billion in the second quarter.

Adjusted diluted earnings per share, a non-GAAP measure, were $6.69 for the quarter.

A regulatory filing showed the results were released in a press release and a financial supplement, both furnished under Item 2.02 of Form 8-K.

Here's how the company did:

• Diluted earnings per share: $5.61, vs. $4.73 in the second quarter and $4.83 a year earlier
• Adjusted diluted earnings per share: $6.69, vs. $5.81 in the second quarter and $5.95 a year earlier
• Net income: $3.5 billion, vs. $3.0 billion in the second quarter and $3.2 billion a year earlier
• Total net revenue: $16.3 billion, up 3% from the second quarter and $15.4 billion a year earlier

Net income available to common stockholders was $3.4 billion, after $73 million in preferred stock dividends and $12 million in impacts from preferred stock redemptions.

Adjusted results exclude three pre-tax items: $483 million in acquisition amortization expenses, $338 million in Discover integration expenses and $47 million in Brex integration expenses.

After taxes, those items reduced diluted earnings per share by 60 cents, 42 cents and 6 cents, respectively.

"The Discover integration continues to go well and we're making good progress on delivering the expected synergies," said Founder, Chairman, and Chief Executive Officer Richard D. Fairbank. "We continue to invest to deliver sustained growth and value creation over the long-term."

Net interest income rose 4% to $12.9 billion, while non-interest income fell 1% to $3.5 billion.

The net interest margin was 8.41%, an increase of 40 basis points from the second quarter.

Total non-interest expense decreased 2% to $8.9 billion, with marketing down 4% and operating expense down 2%.

The provision for credit losses decreased $73 million to $2.9 billion, and net charge-offs were $3.1 billion.

The company also released $225 million from its loan reserve during the quarter.

Credit Card net income from continuing operations was $2.9 billion, up from $2.4 billion in the second quarter, on total net revenue of $12.1 billion.

Consumer Banking net income was $560 million, compared with $486 million in the second quarter. Commercial Banking net income was $313 million, compared with $239 million.

Period-end loans held for investment rose $5.4 billion, or 1%, to $462.5 billion, with auto loans up 4% to $92.9 billion.

Period-end total deposits decreased $3.6 billion, or 1%, to $480.7 billion. The interest-bearing deposit rate paid rose 3 basis points to 2.94%.

The common equity Tier 1 capital ratio under the Basel III Standardized Approach was 13.8% as of Sept. 30. The company said the regulatory capital metrics are preliminary and subject to change.

The company completed its acquisition of Brex on April 7, 2026, in a combination of stock and cash. Brex integration expenses were $47 million in the third quarter, compared with $96 million in the second.

The company declared and paid a dividend of $0.80 per common share, unchanged from the second quarter and up from $0.60 a year earlier.

Period-end common shares outstanding were 601.5 million, down from 635.7 million a year earlier. Tangible book value per common share was $102.72, down from $105.18 a year earlier.

Total assets were $672.9 billion at Sept. 30, and total deposits were $480.7 billion.

The company will hold an earnings conference call at 5:00 p.m. Eastern Time on Oct. 20, and a webcast replay will be archived on its website through Nov. 3.

The filing does not include financial guidance for future periods.