Slides
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C O N F I D E N T I A L Third Quarter 2026 Results October 20, 2026
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This presentation and related communications should be read in conjunction with the financial statements, notes, and other information contained in Capital One’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Please note that the following materials containing information regarding Capital One’s financial performance is preliminary and based on Capital One’s data available at the time of the earnings presentation. It speaks only as of the particular date or dates indicated in these materials. Capital One does not undertake any obligation to update or revise any of the information contained herein whether as a result of new information, and future events or otherwise. Certain statements in this presentation and other oral and written statements made by Capital One from time to time are forward-looking statements, including those that discuss, among other things: strategies, goals, outlook or other non-historical matters; projections, revenues, income, returns, expenses, assets, liabilities, capital and liquidity measures, capital allocation plans, accruals for claims in litigation and for other claims against Capital One, earnings per share, efficiency ratio, operating efficiency ratio or other financial measures for Capital One; future financial and operating results; Capital One’s plans, objectives, expectations and intentions; and the assumptions that underlie these matters. To the extent that any such information is forward-looking, it is intended to fit within the safe harbor for forward-looking information provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements often use words such as “will,” “anticipate,” “target,” “expect,” “think,” “estimate,” “intend,” “plan,” “goal,” “believe,” “forecast,” “outlook” or other words of similar meaning. Numerous factors could cause Capital One’s actual results to differ materially from those described in such forward-looking statements, including, among other things: risks related to the integration of the acquisition of Discover Financial Services by Capital One (the “Discover Acquisition”), including Capital One’s ability to successfully integrate its businesses, incur substantial expenses related to the Discover Acquisition and to the integration of Discover, and the expenses may be greater than anticipated due to factors, some or all of which may be outside Capital One’s control; Capital One’s ability to realize all of the anticipated benefits of the Discover Acquisition, or those benefits may take longer to realize than expected due to factors that may be outside its control; the integration of Discover may have an adverse effect on Capital One’s business and results of operations due to the diversion of a substantial portion of the time and attention of its management team; potential employee attrition; and other factors that may affect Capital One’s future results; changes and instability in the macroeconomic environment, resulting from factors that include, but are not limited to, monetary, fiscal and trade policy actions such as tariffs, geopolitical conflicts or instability, such as the war in Ukraine, the ongoing conflict in the Middle East and the political instability in Venezuela, labor shortages, government shutdowns, inflation and deflation, changes in energy costs, potential recessions, technology-driven disruption of certain industries, adverse developments impacting the U.S. or global banking industry, including a deterioration in private credit markets and potential spread to other credit markets, changing immigration policies, lower demand for credit, changes in deposit practices and payment patterns; fluctuations in interest rates; Capital One’s ability to maintain adequate sources of funding and liquidity to operate its business; increases in credit losses and delinquencies and the impact of incorrectly estimated expected losses, which could result in inadequate reserves; Capital One’s ability to maintain adequate capital or liquidity levels or to comply with revised capital or liquidity requirements, which could have a negative impact on its financial results and its ability to return capital to its stockholders; limitations on Capital One’s ability to receive dividends from its subsidiaries; a downgrade in Capital One’s credit ratings; Capital One’s ability to develop, operate and adapt its operational, technology and organizational infrastructure suitable for the nature of its business; increased costs, reductions in revenue, reputational damage, legal exposure and business disruptions that can result from a cyber-attack or other security incident on Capital One or third parties (including their supply chains) with which Capital One conducts business, including an incident that results in the theft, loss, manipulation or misuse of information, or the disabling of systems and access to information critical to business operations; the use, reliability and accuracy of the models, artificial intelligence, and data on which Capital One relies; Capital One’s ability to manage risks of internal and external fraud; compliance with new and existing domestic and foreign laws, regulations and regulatory expectations, which may change over time including as a result of the political and policy goals of elected and appointed officials; compliance with applicable laws and regulations related to privacy, data protection and data security, in addition to compliance with Capital One’s own privacy policies and contractual obligations to third parties; developments, changes or actions relating to any litigation, governmental investigation or regulatory enforcement action or matter involving Capital One; Capital One’s response to competitive pressures; the amount and rate of deposit growth and changes in deposit costs; Capital One’s ability to execute on its strategic initiatives and operational plans; change in market preference towards other operators of payment networks and alternative payment providers; Capital One’s ability to create and maintain a strong base of network licensees and achieving meaningful global card acceptance; legislation, regulation and merchants’ efforts to reduce the fees (including the interchange component) charged by credit and debit card networks and acquirers to facilitate card transactions; the number of large merchants that accept cards on Capital One’s recently acquired Discover Network or PULSE Network; defaults or risks from bankruptcies, liquidations, restructurings, consolidations and outages by Capital One’s network participants; Capital One’s ability to invest successfully in and introduce digital and other technological developments across all its businesses; Capital One’s success in integrating acquired businesses and loan portfolios, and its ability to realize anticipated benefits from announced transactions and strategic partnerships; changes in the reputation of, or expectations regarding, Capital One or the financial services industry with respect to practices, products, services or financial condition; Capital One’s ability to protect its intellectual property rights; the success of Capital One’s marketing efforts in attracting and retaining customers; Capital One’s risk management strategies; Capital One’s ability to attract, develop, retain and motivate key senior leaders and skilled employees; Capital One’s ability to manage risks from catastrophic events; climate change manifesting as physical or transition risks; Capital One’s assumptions or estimates in its financial statements; the soundness of other financial institutions and other third parties, actual or perceived; and other risk factors identified from time to time in Capital One’s public disclosures, including in the reports that its files with the U.S. Securities and Exchange Commission (the “SEC”). You should carefully consider the factors referred to above in evaluating these forward-looking statements. All information in these slides is based on the consolidated results of Capital One, unless otherwise noted. This presentation includes certain non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures may be useful to investors but should not be viewed in isolation from, or as a substitute for, GAAP results, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. A reconciliation of any non-GAAP financial measures included in this presentation to the comparative GAAP measure can be found in Capital One’s Current Report on Form 8-K filed with the SEC on October 20, 2026, available on its website at www.capitalone.com under “Investors.” Forward-Looking Statements
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• Net income of $3.5 billion, or $5.61 per diluted common share ◦ Adjusted net income per diluted common share(1) of $6.69 • Pre-provision earnings(1) increased 10% to $7.5 billion • Net interest margin increased 40 bps to 8.41% • Provision for credit losses of $2.9 billion • Efficiency ratio of 54.19% ◦ Adjusted efficiency ratio(1) of 48.76% • Operating efficiency ratio of 44.43% ◦ Adjusted operating efficiency ratio(1) of 38.99% • The quarter included the following adjusting items: (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 Note: All comparisons are for the third quarter of 2026 compared with the second quarter of 2026 unless otherwise noted. Regulatory capital metrics and capital ratios as of September 30, 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. (2) Includes purchase accounting-related amortization for acquisitions where integration expenses were also adjusted. Q3 2026 Company Highlights • Common equity Tier 1 capital ratio under Basel III Standardized Approach of 13.8% at September 30, 2026 • Tangible book value per share(1) decreased 2% to $102.72 • Period-end loans held for investment increased 1%, or $5.4 billion, to $462.5 billion • Average loans held for investment increased 1%, or $6.7 billion, to $457.4 billion • Period-end total deposits decreased 1%, or $3.6 billion, to $480.7 billion ◦ Period-end insured deposits of $408.1 billion, 85% of total deposits • Average total deposits decreased 1%, or $4.2 billion, to $482.6 billion
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(1) Does not include $20 million of provision for credit losses related to unfunded lending commitments that is recorded in other liabilities in Commercial Banking. (2) Primarily represents foreign currency translation adjustments. (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Allowance for credit losses: Balance as of June 30, 2026 $ 19,329 $ 2,162 $ 1,475 $ 22,966 Charge-offs (4,043) (734) (21) (4,798) Recoveries 1,298 358 21 1,677 Net charge-offs (2,745) (376) — (3,121) Provision for credit losses(1) 2,479 417 — 2,896 Allowance build/(release) for credit losses (266) 41 — (225) Other changes(2) (2) — — (2) Balance as of September 30, 2026 $ 19,061 $ 2,203 $ 1,475 $ 22,739 Allowance coverage ratio as of September 30, 2026 6.90% 2.34% 1.60% 4.92% Third Quarter 2026 Highlights • Allowance release of $225 million primarily driven by a release in Domestic Card due to favorable credit performance • Allowance coverage ratio of 4.92% at September 30, 2026, compared to 5.02% at June 30, 2026 Allowance for Credit Losses
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$1,878 $1,892 $2,047 $2,162 $2,203 2.26% 2.23% 2.36% 2.39% 2.34% 09/30/25 12/31/25 03/31/26 06/30/26 09/30/26 $1,498 $1,451 $1,534 $1,475 $1,475 1.69% 1.63% 1.70% 1.62% 1.60% 09/30/25 12/31/25 03/31/26 06/30/26 09/30/26 Credit Card $19,727 $20,066 $20,049 $19,329 $19,061 7.28% 7.18% 7.41% 7.02% 6.90% 09/30/25 12/31/25 03/31/26 06/30/26 09/30/26 Domestic Card $18,476 $18,811 $18,806 $18,101 $17,851 7.28% 7.17% 7.40% 6.99% 6.86% 09/30/25 12/31/25 03/31/26 06/30/26 09/30/26 Allowance Coverage Ratios by Segment Consumer Banking Commercial Banking
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Third Quarter 2026 Highlights • Average quarterly Liquidity Coverage Ratio of 163% • Total liquidity reserves of $133.8 billion as of September 30, 2026 ◦ $48.9 billion in cash and cash equivalents 143,071 143,972 164,766 144,104 133,838 FHLB eligible loans Cash and cash equivalents Investment securities 3Q25 4Q25 1Q26 2Q26 3Q26 6 6% Y/Y Average Quarterly Liquidity Coverage Ratio 161% 173% 166% 165% 163% Liquidity Coverage Ratio 3Q25 4Q25 1Q26 2Q26 3Q26 Total Liquidity Reserves ($M)(1) Liquidity Note: The Q3’26 Liquidity Coverage Ratio is preliminary and therefore subject to change. (1) Amount represents unencumbered liquidity reserves. Securities pledged and eligible to secure FHLB borrowing capacity are presented within investment securities. 6 7% Q/Q
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Third Quarter 2026 Highlights • Net interest margin increased 40 bps quarter-over-quarter primarily driven by higher yield on Card loans, lower average cash balances, and higher day count • Net interest margin increased 5 bps year-over-year as lower rates paid on Retail deposits largely offset lower asset yields $12,404 $12,466 $12,145 $12,374 $12,886 8.36% 8.26% 7.87% 8.01% 8.41% Net Interest Income (NII) ($M) Net Interest Margin 3Q25 4Q25 1Q26 2Q26 3Q26 5 4% Q/Q NII 5 4% Y/Y NII Net Interest Income and Net Interest Margin
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Third Quarter 2026 Highlights • Well-capitalized with CET1 capital ratio of 13.8% as of September 30, 2026 • Repurchased 12.6 million common shares for $2.6 billion in the third quarter of 2026 ; year to date repurchases of $7.9 billion Common Equity Tier 1 Capital Ratio 14.4% 14.3% 14.4% 13.7% 13.8% 3Q25 4Q25 1Q26 2Q26 3Q26 (Dollars in millions) Amount Ratio Common equity Tier 1 (“CET1”) as of June 30, 2026 $ 70,776 13.7% Q3 2026 net income 3,539 68 bps Common & preferred stock dividends(1) (563) (11) bps Share repurchases (2,645) (51) bps Adjustments for goodwill and intangibles, net of deferred tax liability 379 7 bps Net issuances of employee stock 266 5 bps Other quarterly activities (7) — bps Risk-weighted assets changes N/A (10) bps CET1 as of September 30, 2026 $ 71,745 13.8% Capital Note: Regulatory capital metrics and capital ratios as of September 30, 2026 are preliminary and therefore subject to change. (1) Includes $559 million of cash dividends and $4 million of dividend-equivalents associated with employee stock awards.
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Three Months Ended September 30, 2026 (Dollars in millions) Credit Card Consumer Banking Commercial Banking Other Total Net interest income $ 9,622 $ 2,531 $ 603 $ 130 $ 12,886 Non-interest income (loss) 2,525 769 298 (134) 3,458 Total net revenue (loss) 12,147 3,300 901 (4) 16,344 Provision for credit losses 2,479 417 20 — 2,916 Non-interest expense 5,880 2,142 467 367 8,856 Income (loss) from continuing operations before income taxes 3,788 741 414 (371) 4,572 Income tax provision (benefit) 929 181 101 (178) 1,033 Income (loss) from continuing operations, net of tax $ 2,859 $ 560 $ 313 $ (193) $ 3,539 Financial Summary—Business Segment Results
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Third Quarter 2026 Highlights • Ending loans held for investment up $5.3 billion, or 2%, year-over-year; average loans held for investment up $4.5 billion, or 2%, year-over-year • Purchase volume up 11% year-over-year • Revenue up $540 million , or 5%, year- over-year • Revenue margin of 17.75% • Non-interest expense up $471 million or 9% year-over-year • Provision for credit losses up $115 million year-over-year • Net charge-off rate of 4.01% 2026 Q3 2026 2026 2025 2026 2025 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: Net interest income $ 9,622 $ 9,252 $ 9,396 4% 2% Non-interest income 2,525 2,513 2,211 — 14 Total net revenue 12,147 11,765 11,607 3 5 Provision for credit losses 2,479 2,474 2,364 — 5 Non-interest expense 5,880 6,098 5,409 (4) 9 Pre-tax income $ 3,788 $ 3,193 $ 3,834 19% (1)% Selected performance metrics: Period-end loans held for investment $ 276,360 $ 275,408 $ 271,037 —% 2% Average loans held for investment 273,670 271,197 269,175 1 2 Total net revenue margin 17.75% 17.35% 17.25% 40bps 50bps Net charge-off rate 4.01 4.71 4.61 (70) (60) Purchase volume $ 254,679 $ 253,750 $ 230,379 —% 11% Credit Card
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Third Quarter 2026 Highlights • Ending loans held for investment up $6.3 billion, or 2%, year-over-year; average loans held for investment up $5.2 billion, or 2%, year- over-year • Purchase volume up 11% year-over-year • Revenue up $554 million , or 5%, year-over- year • Revenue margin of 17.85% • Non-interest expense up $464 million , or 9%, year-over-year • Provision for credit losses up $147 million year- over-year • Net charge-off rate of 3.98% • 30+ day performing delinquency rate of 3.74% 2026 Q3 2026 2026 2025 2026 2025 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: Net interest income $ 9,005 $ 8,643 $ 8,766 4% 3% Non-interest income 2,475 2,460 2,160 1 15 Total net revenue 11,480 11,103 10,926 3 5 Provision for credit losses 2,310 2,292 2,163 1 7 Non-interest expense 5,556 5,771 5,092 (4) 9 Pre-tax income $ 3,614 $ 3,040 $ 3,671 19% (2)% Selected performance metrics: Period-end loans held for investment $ 260,252 $ 259,005 $ 253,951 —% 2% Average loans held for investment 257,311 254,625 252,090 1 2 Total net revenue margin 17.85% 17.44% 17.34% 41bps 51bps Net charge-off rate 3.98 4.71 4.63 (73) (65) 30+ day performing delinquency rate 3.74 3.39 3.89 35 (15) Purchase volume $ 250,024 $ 249,195 $ 226,147 —% 11% Domestic Card
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2026 Q3 2026 2026 2025 2026 2025 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: Net interest income $ 2,531 $ 2,431 $ 2,357 4% 7% Non-interest income 769 778 475 (1) 62 Total net revenue 3,300 3,209 2,832 3 17 Provision for credit losses 417 444 340 (6) 23 Non-interest expense 2,142 2,121 1,941 1 10 Pre-tax income $ 741 $ 644 $ 551 15% 34% Selected performance metrics: Period-end loans held for investment $ 94,043 $ 90,467 $ 83,230 4% 13% Average loans held for investment 92,330 88,583 82,295 4 12 Auto loan originations 13,103 12,916 10,731 1 22 Period-end deposits 431,095 435,221 416,765 (1) 3 Average deposits 432,953 435,890 414,219 (1) 5 Average deposits interest rate 2.78% 2.76% 3.07% 2bps (29)bps Net charge-off rate 1.63 1.48 1.58 15 5 Global Payment Network volume $ 190,934 $ 189,612 $ 153,117 1% 25% Third Quarter 2026 Highlights • Ending loans held for investment up $10.8 billion or 13% year-over-year; average loans held for investment up $10.0 billion, or 12%, year-over-year • Ending deposits up $14.3 billion , or 3%, year-over-year • Auto loan originations up $2.4 billion , or 22%, year-over-year • Revenue up $468 million , or 17%, year- over-year • Non-interest expense up $201 million , or 10%, year-over-year • Provision for credit losses up $77 million year-over-year • Average deposits interest rate of 2.78% • Net charge-off rate of 1.63% • Global Payment Network volume of $190.9 billion . Consumer Banking
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Third Quarter 2026 Highlights • Ending loans held for investment up $834 million, or 1%, quarter-over-quarter and average loans held for investment up $481 million , or 1%, quarter-over- quarter • Ending deposits up $295 million, or 1%, quarter-over-quarter; average deposits up $283 million, or 1% quarter-over- quarter • Revenue up $51 million, or 6%, quarter- over-quarter • Non-interest expense up $5 million , or 1%, quarter-over-quarter • Provision for credit losses down $51 million quarter-over-quarter • Net charge-off rate of 0% • Criticized performing loan rate of 4.40% and criticized nonperforming loan rate of 1.22% 2026 Q3 2026 2026 2025 2026 2025 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: Net interest income $ 603 $ 585 $ 586 3% 3% Non-interest income 298 265 318 12 (6) Total net revenue 901 850 904 6 — Provision for credit losses 20 71 9 (72) 122 Non-interest expense 467 462 520 1 (10) Pre-tax income $ 414 $ 317 $ 375 31% 10% Selected performance metrics: Period-end loans held for investment $ 92,127 $ 91,293 $ 88,892 1% 4% Average loans held for investment 91,380 90,899 88,389 1 3 Period-end deposits 31,136 30,841 29,920 1 4 Average deposits 31,531 31,248 29,889 1 5 Average deposits interest rate 1.83% 1.81% 2.13% 2bps (30)bps Net charge-off rate 0.00 0.53 0.21 (53) (21) Risk category as a percentage of period- end loans held for investment:(1) Criticized performing 4.40% 4.44% 5.13% (4)bps (73)bps Criticized nonperforming 1.22 1.32 1.39 (10) (17) Commercial Banking (1) Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.
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Appendix
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2026 2026 2026 2025 2025 Nine Months Ended September 30, (Dollars in millions, except per share data and as noted) Q3 Q2 Q1 Q4 Q3 2026 2025 Adjusted diluted earnings per share (“EPS”): Net income available to common stockholders (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,422 $ 2,935 $ 2,081 $ 2,057 $ 3,086 $ 8,438 $ 117 Acquisition amortization expenses(1) 483 494 477 546 603 1,454 943 Discover integration expenses 338 298 415 352 348 1,051 757 Brex integration expenses 47 96 — — — 143 — Initial allowance build for Discover non-PCD loans — — — — — — 8,767 Legal reserve activities — — — 117 — — 239 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) 4,290 3,823 2,973 2,560 4,037 11,086 10,823 Income tax impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (214) (219) (221) (124) (236) (654) (2,651) Adjusted net income available to common stockholders (non-GAAP) . . . . . . . . . . . . . . . . . . . $ 4,076 $ 3,604 $ 2,752 $ 2,436 $ 3,801 $ 10,432 $ 8,172 Diluted weighted-average common shares outstanding (in millions) (GAAP) . . . . . . . . . . . . . 609.5 621.1 623.4 631.6 639.5 618.0 510.9 Diluted EPS (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5.61 $ 4.73 $ 3.34 $ 3.26 $ 4.83 $ 13.65 $ 0.23 Impact of adjustments noted above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.08 1.08 1.08 0.60 1.12 3.23 15.77 Adjusted diluted EPS (non-GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6.69 $ 5.81 $ 4.42 $ 3.86 $ 5.95 $ 16.88 $ 16.00 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. Reconciliation of Non-GAAP Measures (1) Includes purchase accounting-related amortization for acquisitions where integration expenses were also adjusted.
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2026 2026 2026 2025 2025 Nine Months Ended September 30, (Dollars in millions) Q3 Q2 Q1 Q4 Q3 2026 2025 Adjusted net revenue: Total net revenue (GAAP) $ 16,344 $ 15,850 $ 15,231 $ 15,583 $ 15,359 $ 47,425 $ 37,851 Acquisition amortization expenses(1) (36) (24) (1) 37 105 (61) 190 Adjusted net revenue (non-GAAP) $ 16,308 $ 15,826 $ 15,230 $ 15,620 $ 15,464 $ 47,364 $ 38,041 Adjusted efficiency ratio: Non-interest expense (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,856 $ 9,043 $ 8,464 $ 9,342 $ 8,263 $ 26,363 $ 21,156 Acquisition amortization expenses(1) (519) (518) (478) (509) (498) (1,515) (753) Discover integration expenses (338) (298) (415) (352) (348) (1,051) (757) Brex integration expenses (47) (96) — — — (143) — Legal reserve activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — (117) — — (239) FDIC special assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 29 — — — Adjusted non-interest expense (non-GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,952 $ 8,131 $ 7,571 $ 8,393 $ 7,417 $ 23,654 $ 19,407 Adjusted net revenue (non-GAAP) $ 16,308 $ 15,826 $ 15,230 $ 15,620 $ 15,464 $ 47,364 $ 38,041 Efficiency ratio (GAAP) 54.19% 57.05% 55.57% 59.95% 53.80% 55.59% 55.89% Impact of adjustments noted above (543) bps (567) bps (586) bps (622) bps (584) bps (565) bps (489) bps Adjusted efficiency ratio (non-GAAP) 48.76% 51.38% 49.71% 53.73% 47.96% 49.94% 51.02% Adjusted operating efficiency ratio: Operating expense (GAAP) $ 7,262 $ 7,382 $ 6,967 $ 7,408 $ 6,860 $ 21,611 $ 17,206 Acquisition amortization expenses(1) (519) (518) (478) (509) (498) (1,515) (753) Discover integration expenses (338) (298) (415) (352) (348) (1,051) (757) Brex integration expenses (47) (96) — — — (143) — Legal reserve activities — — — (117) — — (239) FDIC special assessment — — — 29 — — — Adjusted operating expense (non-GAAP) $ 6,358 $ 6,470 $ 6,074 $ 6,459 $ 6,014 $ 18,902 $ 15,457 Adjusted net revenue (non-GAAP) 16,308 $ 15,826 $ 15,230 $ 15,620 $ 15,464 $ 47,364 $ 38,041 Operating efficiency ratio (GAAP) 44.43% 46.57% 45.74% 47.54% 44.66% 45.57% 45.46% Impact of adjustments noted above (544) bps (569) bps (586) bps (619) bps (577) bps (566) bps (482) bps Adjusted operating efficiency ratio (non-GAAP) 38.99% 40.88% 39.88% 41.35% 38.89% 39.91% 40.63% 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. Reconciliation of Non-GAAP Measures (1) Includes purchase accounting-related amortization for acquisitions where integration expenses were also adjusted.
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(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. 2026 2026 2026 2025 2025 (Dollars in millions) Q3 Q2 Q1 Q4 Q3 Pre-provision earnings Total net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,344 $ 15,850 $ 15,231 $ 15,583 $ 15,359 Non-interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,856) (9,043) (8,464) (9,342) (8,263) Pre-provision earnings(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,488 $ 6,807 $ 6,767 $ 6,241 $ 7,096 Tangible book value per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tangible common equity (period-end) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 61,791 $ 64,546 $ 66,365 $ 67,333 $ 66,869 Outstanding common shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601.5 613.5 615.9 625.1 635.7 Tangible book value per common share(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 102.72 $ 105.21 $ 107.76 $ 107.72 $ 105.18 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. Reconciliation of Non-GAAP Measures