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COF2026 Q2Financial Services
2mo
Capital One Financial Corporation 2026 Q2: Financial Performance summary
Financial Performance Summary
- Allowance release brought the allowance balance to $23.0 billion, with total portfolio coverage ratio decreasing 26 bps to 5.02%.
- Capital 1 reported Q2 2026 earnings of $3.0 billion ($4.73 per diluted share), including adjusting items related to the Discover and Brex acquisitions.
- Liquidity reserves ended at about $144 billion (down $21 billion) and ending cash decreased about $22 billion to ~$55 billion; Common Equity Tier 1 ended at 13.7% (down 70 bps vs. Q1).
- Net interest margin (NIM) was 8.01%, up 14 bps from the prior quarter, driven by a 9-bps impact from one additional day and lower rates paid on retail deposits plus a $5 billion decline in average cash balances.
- Net of adjusting items, Q2 2026 EPS was $5.81; pre-provision earnings grew 1% quarter over quarter and was flat on an adjusted basis.
- Provision for credit losses decreased $1.1 billion (-27%) to $3.0 billion in the quarter, reflecting $3.7 billion of net charge-offs and a $662 million provision release.
- Revenue increased 4% quarter over quarter, while noninterest expense grew 7%, contributing to only modest pre-provision growth.