Capital One Financial Corporation

Good day and thank you for standing by. Welcome to the Capital One Q3 2026 earnings call. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. I would now like to hand the conference over to your speaker today, Jeff Norris, Senior Vice President of Finance, Please go ahead.

Thanks very much, Josh, and welcome, everybody. To access the live webcast of this call, please go to the Investors section of Capital One's website, CapitalOne.com. A copy of the earnings presentation, press release, and financial supplement can also be found in the Investors section of Capital One's website, CapitalOne.com, by selecting Financials and then Quarterly Earnings Releases. With me tonight are Mr. Richard Fairbank, Capital One's Chairman and Chief Executive Officer, and Mr. Andrew Young, Capital One's Chief Financial Officer. Rich and Andrew are going to walk you through the presentation summarizing our third quarter results for 2026. Please note that this presentation may contain forward-looking statements. Information regarding Capital One's financial performance and any forward-looking statements contained in today's discussion in the materials speak only as of the particular date or dates indicated in the materials. And Capital One does not undertake any obligation to update or revise any of this information whether as a result of new information, future events, or otherwise. Numerous factors could cause our actual results to differ materially from those described in forward-looking statements. For more information on these factors, please see the section titled forward-looking statements in the earnings release presentation and the risk factor section of our annual and quarterly reports accessible at Capital One's website and filed with the SEC. And now I'll turn the call over to Mr. Young. Andrew.

Thanks, Jeff, and good afternoon, everyone. I will start on slide three of tonight's presentation. In the third quarter, Capital One earned $3.5 billion, or $5.61 per diluted common share. The results for the quarter included several adjusting items related to the Discover and Brex acquisitions, which are outlined on the slide. Net of these adjusting items, third quarter earnings per share, were $6.69. Relative to the prior quarter, both period end and average loans held for investment increased 1%, while period end and average deposits decreased 1%. Linked quarter revenue increased 3%, and non-interest expense declined 2%, resulting in pre-provision earnings growth of 10%. On an adjusted basis, pre-provision earnings grew 9% quarter over quarter. Our provision for credit losses decreased $73 million, or 2%, to $2.9 billion in the quarter. The provision reflects $3.1 billion of net charge-offs and an allowance release of $225 million. Turning to slide four, I'll cover the allowance in greater detail. The $225 million allowance release in the quarter brought the allowance balance to $22.7 billion. Our total portfolio coverage ratio decreased 10 basis points and now stands at 4.92%. I'll cover the drivers of the changes in allowance and coverage ratio by segment on slide five. In our domestic card business, we released $250 million of allowance. The allowance release was driven by continued favorable observed credit in the quarter, partially offset by greater consideration to downside economic scenarios related to geopolitical risks. The coverage ratio decreased by 13 basis points and now stands at 6.86%. In our consumer banking segment, we built $41 million of allowance. The allowance billed was primarily driven by strong growth in the auto business, partially offset by an improved outlook for vehicle values. The coverage ratio ended the quarter at 2.34%, five basis points lower than the second quarter. And finally, in our commercial banking segment, the allowance balance was flat at about $1.5 billion, and the coverage ratio declined by two basis points to 1.6%. Turning to page six, I'll now discuss liquidity. Total liquidity reserves ended the second quarter at about $134 billion, down $10 billion from the prior quarter. Our ending cash position decreased by about $6 billion to approximately $49 billion. The market value of our investment securities decreased by about $3 billion. Our preliminary average liquidity coverage ratio in the quarter was 163%. Turning to page seven, I'll cover our net interest margin. Our third quarter net interest margin was 8.41%, 40 basis points higher than the prior quarter. The increase was driven by higher yield in the domestic card business, a $13 billion decline in average cash balances, and an additional day in the quarter. Turning to slide eight, I will end by discussing our capital position. Our common equity tier one capital ratio ended the quarter at 13.8%, roughly flat to the second quarter, as net income in the quarter was largely offset by share repurchases of $2.6 billion, dividends, and growth. With that, I will turn the call over to Rich. Rich?