Capital One reported third-quarter net income of $3.54 billion, or $5.61 per diluted share, compared with $3.19 billion, or $4.83 per share, a year earlier. Total net revenue increased 3% from the previous quarter to $16.3 billion. Adjusted earnings were $6.69 per diluted share after acquisition amortisation and integration expenses. The bank said work to integrate Discover was continuing to progress.
The quarter included $483 million of pre-tax acquisition-amortisation expense, $338 million of Discover integration costs and $47 million of Brex integration costs. Capital One completed its acquisition of Discover earlier in 2026, creating a larger card issuer with its own payments network. The combination has increased the scale of both the bank and its integration programme. Management said it remained focused on achieving the expected synergies while continuing to invest.
MARGINS WIDENED AND LENDING EXPANDED
Net interest margin rose 40 basis points from the previous quarter to 8.41%. Period-end loans held for investment increased $5.4 billion to $462.5 billion, led by a $3.6 billion rise in consumer-banking loans. Credit-card loans increased by less than 1% to $276.4 billion, while commercial-banking loans rose to $92.1 billion. Deposits declined 1% to $480.7 billion.
Capital One recorded a $2.9 billion provision for credit losses, including $3.1 billion of net charge-offs and a $225 million reserve release. Pre-provision earnings increased 10% to $7.5 billion. Non-interest expense declined 2% to $8.9 billion as both marketing and operating costs fell. The common equity Tier 1 ratio was 13.8% at the end of September.
INTEGRATION COSTS REMAIN A KEY TEST
Revenue of $16.34 billion exceeded the $16.25 billion forecast cited by The Wall Street Journal. The result showed the earnings contribution of the enlarged franchise while also illustrating the cost of combining Discover and Brex. Chief executive Richard Fairbank said the Discover integration was going well and that the group was making progress on expected synergies. Capital One did not remove the need to manage credit costs as the card book expands.
Investors will now look for evidence that integration expenses decline as promised savings emerge. Credit performance, deposit pricing and the pace of loan growth will determine whether the wider margin can be sustained. The group will also need to preserve capital while absorbing two acquisitions. Its fourth-quarter results should provide the next full update on integration costs and realised synergies.